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Indian Regulator SEBI Wants Mutual Funds to Stay Away From Crypto Investments Until Legislation Is Finalized

News Feed - 2021-12-31 01:12:28

Indian Regulator SEBI Wants Mutual Funds to Stay Away From Crypto Investments Until Legislation Is Finalized


The Securities and Exchange Board of India (SEBI) has reportedly asked mutual fund companies not to get involved or invest in any type of crypto asset-based investments until the Indian government has come up with cryptocurrency legislation. SEBI Asks Mutual Fund Companies to Wait for Crypto Legislation


The chairman of the Securities and Exchange Board of India (SEBI), 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 offers (NFOs) until the Indian government has come up with cryptocurrency legislation.


There is currently no law governing cryptocurrencies directly in India. However, the Indian government is actively working on cryptocurrency legislation. A crypto bill was listed to be considered in the winter session of parliament but it was not taken up. The government is now reportedly reworking the bill.


Last month, Indian asset management firm Invesco Mutual Fund delayed launching its Invesco Coinshares Global Blockchain ETF Fund of Fund due to regulatory uncertainty around crypto assets even though it was approved by SEBI. The fund is an open-ended scheme investing 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.


The underlying fund’s portfolio as of Nov. 2 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 are reports that crypto assets will be regulated with SEBI as the main regulator.


Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has been calling on the government to completely ban cryptocurrency, noting that a partial ban will not work. RBI Governor Shaktikanta Das has been saying that the central bank has serious and major concerns regarding cryptocurrencies. Tags in this story Crypto Funds, crypto investments, India, indian crypto legislation, indian crypto regulation, mutual funds, sebi


What do you think about SEBI asking mutual fund companies not to invest in any type of crypto asset-based funds until legislation is in place? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Hong Kong Authorities Arrest Two Siblings Accused of Laundering $384 Million via Banks, Crypto Platform REGULATION | 1 day ago US Senator on Crypto: We Need Real Solutions to Make the Financial System Work for Everyone, Not Just the Wealthy REGULATION | 1 day ago


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