Sebi, RBI engage in turf war over Bitcoin regulation

RBI proposes to allow trading in bitcoin as commodity derivative on a digital platform

The government's proposal to regulate Bitcoin crypto currency has sparked a regulatory turf war between Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI). According to sources, the central bank is of the opinion that bitcoin is a security rather than currency and should be regulated by Sebi. The proposal has not gone down well with the latter which opposes the suggestion.

Last week, the finance ministry called for a meeting of all stakeholders to discuss the regulatory framework of the virtual currency. During the meeting, RBI proposed to allow trading in bitcoin on the lines