Turkey and India made significant strides in crypto regulation on May 16, potentially establishing a framework for businesses and investors within their respective borders.

According to Reuters, India's Securities and Exchange Board (SEBI) proposed that multiple regulators oversee crypto trading in the country. SEBI suggested it could monitor crypto securities and oversee initial coin offerings (ICOs), while also licensing equity market-related products. Other agencies would handle insurance and pension-related virtual assets, with the Reserve Bank of India (RBI) regulating fiat-backed cryptos.

This recommendation contrasts with RBI's stance, which views private digital currencies as a macroeconomic risk due to concerns about tax evasion, compliance in peer-to-peer (P2P) activities, and potential impacts on central bank money creation. Both SEBI and RBI detailed their positions in documents submitted to a government panel, which Reuters expects to finalize its report by June.

Meanwhile, Turkey's ruling party introduced a draft law aimed at requiring crypto companies to obtain licenses and meet registration obligations. If enacted, the law would mandate that crypto exchanges and other entities obtain licenses from Turkey's Capital Markets Board. It outlines specific requirements and liabilities related to platform management, service offerings, operational standards, and the regulation of activities such as crypto transactions and storage among individuals in Turkey.

Both countries have historically adopted strict stances on crypto. Turkey prohibited the use of crypto for payments in 2021 due to concerns over regulatory oversight, illicit activities, security breaches, and irreversible transactions. In 2018, India's Reserve Bank initially prohibited financial institutions from engaging with crypto-related companies, though the ban was later overturned. India has since issued compliance notices to foreign crypto exchanges and implemented IP bans.

These latest regulatory developments in India and Turkey signal potential adjustments to accommodate crypto activities in countries with historically stringent policies.