‘If our regulated markets can’t compete with cryptocurrencies…’: SEBI chief addresses investor migration concerns

With the advent and now visible growth of cryptocurrencies, traditional market practices are witnessing an urgent renewal across the world. Earlier this week, Securities and Exchange Board of India (SEBI) Chairman Madhabi Puri Buch highlighted some important changes that traditional markets should implement on a priority basis to retain their investor base. Buch said that if these changes are not introduced soon, investors may migrate to other similar options cryptocurrencies. Buch’s statement comes at a time when the cryptocurrency sector is going through a bull run with BTC trading at $71,733 (roughly Rs. 59.3 lakh) and the cryptocurrency market valuation touching $2.71 trillion (roughly Rs.2,24,25,141 crores).

On the sidelines of an AMFI event on Monday, Buch said that the introduction of features such as instant settlements and tokenization they were long overdue in the arena of traditional markets.

“If our well-regulated market can’t compete with the cryptocurrency world and we can’t say we also offer tokenization and instant settlement in the medium term, I won’t even say in the long term, you should expect investors to move,” Buch She said to the event.

With an aim to retain investors in the traditional markets arena, SEBI is preparing to offer, as an optional service, a same-day settlement cycle starting March 28.

“Why would anyone believe that tomorrow, if there is an alternative available with instant settlement tokenization and the regulated market is said to not offer it… people should be expected to move,” Buch added.

This is one of the rare moments when SEBI, in its own way, has recognized the booming cryptocurrency industry and the competition that regulated markets face from cryptocurrencies.

After That of Bitcoin Since 2009, over 2.2 million cryptocurrencies have entered circulation. As per CoinMarketCapOver 700 cryptocurrency exchanges offer crypto services to millions of entities.

At this point, several cryptocurrencies, including BTC and ETH, are chasing new all-time highs. The gradual implementation of similar rules and regulations EU MiCA AND The G20 roadmap overseeing the global cryptocurrency industry have managed to increase investor confidence. As soon as the United States approved 11 BTC ETF Proposals This January, investors rushed to trade BTC through traditional exchanges. This has led to the current bull run for the digital asset sector.

As for India’s stance on cryptocurrencies, concerns shared by the SEBI chief this week suggest that India is not taking the cryptocurrency sector for granted. Despite the RBI’s constant calls for an average of general ban In the cryptocurrency industry, the Indian government has not only brought cryptocurrencies under national control tax regimebut he also led the G20 initiative to start work on cryptographic rules that would work globally.

For now, India does not accept any cryptocurrency as an alternative to its fiat rupee. Trading and holding cryptocurrencies, however, are permitted in the country. Even some traders accept payments in cryptocurrencies, but such entities are tiny in number.

Cryptocurrency is an unregulated digital currency, it is not legal tender and is subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be liable for any losses resulting from investments based on recommendations, forecasts or any other information contained in the article.

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