The Securities and Exchange Board of India (SEBI) has reportedly urged mutual fund companies not to get involved or invest in any type of cryptocurrency-based investment until the Government of India comes up with cryptocurrency legislation.
SEBI urges mutual fund companies to wait for crypto legislation
Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi reportedly said Tuesday that the market regulator does not want mutual fund companies to get involved or invest in any type of crypto-asset-based new fund offerings (NFOs) until The Indian government has passed laws on cryptocurrency.
There is currently no law in India that directly regulates cryptocurrencies. However, the Indian government is actively working on cryptocurrency legislation. A crypto bill was due to be examined in Parliament’s winter session, but it was not taken up. The government is reportedly revising the law.
Last month, Indian asset management company Invesco Mutual Fund delayed the launch of its Invesco Coinshares Global Blockchain ETF Fund of Fund due to regulatory uncertainty surrounding crypto assets despite being approved by SEBI. The fund is an open-ended fund that invests in Invesco Coinshares Global Blockchain UCITS ETF. It is the first fund in India with exposure to the blockchain ecosystem to receive approval from SEBI.
As of November 2nd, the portfolio of the underlying fund includes Coinbase Global, GMO Internet, Kakao Corp. SBI Holdings, Hive Blockchain Technologies, Bitfarms, Bit Digital and Microstrategy.
While the Indian government has not made an official announcement whether it will ban or regulate cryptocurrencies, there have been reports that crypto assets will be regulated with SEBI as the primary regulator.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has urged the government to ban cryptocurrencies entirely, stating that a partial ban will not work. RBI Governor Shaktikanta Das said the central bank has serious and grave concerns about cryptocurrencies.
What do you think of SEBI asking mutual fund companies not to invest in any type of crypto-asset-based fund until the legislation is in place? Let us know in the comment section below.
Kevin Helms
Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.
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