Budget 2022-23: The Finance Ministry has started this exercise to bring digital gold along with crypto currency under some regulatory purview. For this, the churning has started between the Finance Ministry, Security and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).
New rules will protect you from dangers
Considering the uncontrolled volatility in such investments in the country and the lack of investor protection, there is a growing concern about these assets. The government plans to bring transparency in non-regulated assets and curb exaggerated claims by companies to lure investors.
According to reports, the central government is working on a plan to categorize digital gold as a securities. For this new arrangement, amendments can be made in the SEBI Act and the Securities Contractor Regulation Act. These amendments can be announced while presenting the general budget in February next year.
PM took charge
Prime Minister Narendra Modi himself has already held a big meeting in this regard on Saturday. He brainstormed with the regulators to decide a long-term strategy on crypto-assets. Subsequently, the Standing Committee on Finance held a meeting with all the stakeholders of crypto-assets on Monday to find out their views on the ‘opportunities and challenges associated with crypto finance’.
Start working on regulation
It is noteworthy that before the proposal of regulation on digital gold, SEBI in September and October had barred registered brokers and investment advisors from offering products related to investment in digital gold and other non-regulated assets. After this, now a proposal has come to regulate digital gold.
Markets regulator SEBI said that offering such products is in violation of the SEBI Act and doing so can attract monetary penalty and in some cases the license can also be revoked.
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