InvestorQ : How is digital gold likely to be regulated in India?
Aditi Sharma made post

How is digital gold likely to be regulated in India?

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Mahima Roy answered.
2 weeks ago
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The Finance Ministry and SEBI are currently working towards bringing digital gold and crypto assets under the regulatory ambit. However, while cryptos may have to be deliberated more, the regulation of digital gold is likely to happen with immediate effect, perhaps in the forthcoming Union Budget itself. This will address concerns over unregulated growth.

In the current market, gold bonds and gold ETFs are regulated by RBI and SEBI. However, digital gold is not regulated by either. That makes digital gold open to counterparty risk. In this context, an immediate answer would be to classify digital gold as a security under the SEBI Act and SCRA. SEBI has barred registered brokers from dealing in digital gold.

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image
Mahima Roy answered.
2 weeks ago
Follow

The Finance Ministry and SEBI are currently working towards bringing digital gold and crypto assets under the regulatory ambit. However, while cryptos may have to be deliberated more, the regulation of digital gold is likely to happen with immediate effect, perhaps in the forthcoming Union Budget itself. This will address concerns over unregulated growth.

In the current market, gold bonds and gold ETFs are regulated by RBI and SEBI. However, digital gold is not regulated by either. That makes digital gold open to counterparty risk. In this context, an immediate answer would be to classify digital gold as a security under the SEBI Act and SCRA. SEBI has barred registered brokers from dealing in digital gold.

3 Views

image
Mahima Roy answered.
2 weeks ago
Follow

The Finance Ministry and SEBI are currently working towards bringing digital gold and crypto assets under the regulatory ambit. However, while cryptos may have to be deliberated more, the regulation of digital gold is likely to happen with immediate effect, perhaps in the forthcoming Union Budget itself. This will address concerns over unregulated growth.

In the current market, gold bonds and gold ETFs are regulated by RBI and SEBI. However, digital gold is not regulated by either. That makes digital gold open to counterparty risk. In this context, an immediate answer would be to classify digital gold as a security under the SEBI Act and SCRA. SEBI has barred registered brokers from dealing in digital gold.

3 Views