‘If Our Regulated Markets Can’t Compete With Crypto…’: SEBI Chief Addresses Investor Migration Concerns

Mar13,2024



With the advent of cryptocurrencies and the growth now visible, there seems to be the potential for immediate reform in traditional market practices around the world. Earlier this week, Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch highlighted some important changes for traditional markets to implement on priority basis to retain their investor-base. Buch said that if these changes are not implemented soon, investors may migrate to other alternatives such as cryptocurrencies. Buch's statement comes at a time when the crypto sector is going through a boom, with BTC trading at $71,733 (roughly Rs. 59.3 lakh) and the crypto market valuation touching $2.71 trillion (roughly Rs. 2,24,25,141 crore). Used to be.

Speaking on the sidelines of an AMFI event on Monday, Buch said the introduction of features like instant settlement and tokenization in the traditional market sector was long overdue.

“If our well-regulated market can't compete with the crypto world and can't say we offer you tokens and instant settlement in the medium term, I wouldn't even say long term, you will be put ahead of investors. Should be expected to increase,” Butch said. events.

With an aim to keep investors in the traditional market sector, Sebi is preparing to offer same-day settlement cycle, as an optional service, from March 28.

Butch continued, “Why should anyone believe that tomorrow if there is an option available with instant settlement tokens and they say the regulated market doesn't offer it… then you should expect people to move on “

This is one of those rare times when SEBI, in its subtle way, acknowledged the boom in the crypto sector and the competition from crypto to regulated markets.

Since Bitcoin's introduction in 2009, more than 2.2 million cryptocurrencies have come into circulation. According to CoinMarketCap, there are more than 700 crypto exchanges providing crypto services to millions of entities.

At the moment, many cryptocurrencies including BTC and ETH are chasing new all-time highs. The gradual deployment of rules and regulations such as the EU's MiCA and the G20's roadmap to oversee the global crypto industry has managed to boost investor confidence. As soon as the US approved 11 BTC ETF proposals this January, investors rushed to trade BTC through traditional exchanges. This has resulted in the current boom in the digital assets industry.

As far as India's stance on crypto is concerned, the concerns shared by the SEBI chief this week indicate that India is not taking the crypto sector lightly. Despite RBI's persistent appeals for a complete ban on the crypto sector, the Indian government not only brought crypto under the national tax regime, but also led the G20 initiative to start work on crypto regulations that would work globally. .

At present, India does not accept any cryptocurrency as an alternative to its fiat rupee. However, trading and storage of cryptocurrencies is allowed in the country. Some merchants also accept payments in cryptocurrencies, but the number of such entities is very small.


Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risks. The information provided in the article is not intended to constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be responsible for any loss incurred from any investment based on any speculative recommendation, forecast or any other information contained in the article.

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