India's Securities and Exchange Board (SEBI) has suggested a collaborative approach to regulating cryptocurrencies, contradicting the Reserve Bank of India's (RBI) push for a blanket ban on stablecoins. SEBI's proposal, submitted to a government panel, recommends shared oversight among multiple regulators.

According to Reuters, SEBI suggests dividing regulatory responsibilities: SEBI would monitor securities-like cryptocurrencies and initial coin offerings (ICOs), RBI would oversee fiat-backed stablecoins, and the Insurance Regulatory and Development Authority of India (IRDAI) would handle insurance-related virtual assets, in collaboration with the Pension Fund Regulatory and Development Authority (PFRDA). Consumer Protection Act would resolve investor grievances.

This development comes amid India's national elections and conflicting signals on crypto regulation. Despite imposing taxes on the industry, the Finance Ministry has refused to clarify crypto's legal status. However, recent signals suggest a shift in credibility, with India pushing for global crypto consensus as G20 president and registering over 46 crypto-related firms with the financial intelligence unit.

The proposal highlights the ongoing debate on India's crypto policy, with SEBI, RBI, and other regulators yet to respond to requests for comment. As the government panel prepares to submit its report by June, the future of crypto regulation in India remains uncertain.