Bitcoin cannot be ignored, Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi on Wednesday said the virtual currency so far has not posed any systemic and a government panel is looking into it.
Currently, any cryptocurrency, including bitcoin, is not an approved product by the Reserve Bank of India (RBI) or any other regulator. “On the issue of bitcoins, the government is looking into it in consultation with the RBI and Sebi. The panel, also consisting of finance and information technology ministries, is looking into what to do about it,” Tyagi said at the financial markets summit organized by the industry lobby Confederation of Indian Industry.
However, he said there should not be any regulatory oversights on blockchain technology saying this is a useful technology which should be encouraged. “Blockchain technology that everyone uses and is useful, should not have regulatory oversight and that’s something which needs to be encouraged and we are also encouraging it,” he said.
The RBI has been issuing warnings since 2013, the first time when the surge in bitcoins caught the attention of Indians, but risks have multiplied manifold now in the wake of a significant spurt in the valuation of many such virtual currencies and a rapid growth in initial coin issuances.