India's Market Regulator Warns of Investors Moving to Crypto Without Instant Settlements

According to CoinDesk, Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), has warned that if regulated markets do not offer instant settlement, investors will move to spaces like crypto. Settlement refers to the final step in payments and securities trade. On Monday, Buch announced plans to introduce faster settlements in India. The country is planning to introduce a same-day settlement cycle from March 28 on an optional basis, making it the second country after China to do so, while other nations typically settle within two days. Buch emphasized the need for India's well-regulated market to compete with the crypto world by offering tokenization and instantaneous settlement over the medium term. She warned that a sizeable part of the market could move to crypto if this is not achieved. The broader plan includes adopting instant settlement, effective from March 2025. The plan is yet to be approved by the market regulator's board, which is set to meet on Friday. SEBI has historically played a distant role with regard to crypto in India, falling under the administrative control of the nation's finance ministry, which recently led the Group of 20 in shaping global consensus around crypto regulation. The Reserve Bank of India, the nation's central bank, has been a fierce critic of crypto while promoting its central bank digital currencies.