Madhabi Puri Buch, the head of India’s Securities and Exchange Board of India (SEBI), has issued a clear message: traditional markets must evolve or risk losing investors to the cryptocurrency sector. Buch’s remarks come amid a surge in crypto popularity, highlighted by Bitcoin (BTC) soaring to a record high of $71,733 (roughly Rs. 59.3 lakh).
Buch’s concern stems from the unique features offered by crypto that traditional markets lack, notably instant settlements and tokenization. Instant settlements enable quicker trade finalization, while tokenization involves converting assets into digital tokens for simplified trading.
“If our well-regulated market cannot compete with the crypto world and cannot offer tokenization and instantaneous settlement,” Buch warned, “you should expect investors to move.” This statement underscores SEBI’s awareness of crypto’s potential threat to established financial systems.
The urgency is compounded by India’s aspirations to lead in instant settlements. Buch stresses that if traditional markets fail to keep pace, investors, especially foreign ones, may seek alternatives.
This development coincides with SEBI’s initial steps towards innovation. The organization is preparing to introduce an optional same-day settlement cycle starting March 28th, seen as a response to crypto’s efficiency.
Whether these initial changes will suffice to retain investor interest remains uncertain. However, SEBI’s recognition of the need for modernization indicates a readiness to adapt to the changing financial landscape. It’s a race for traditional markets to bridge the gap and deter a mass shift towards the crypto realm.
