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Indian regulator SEBI wants mutual funds to stay away from crypto investments until the legislation is finalized – regulation

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 listed to be examined in the winter session of Parliament, but was not taken up. The government is ostensible now revision the statement.

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.

Although the Indian government has not made an official announcement whether it will ban or regulate cryptocurrencies, there have been reports that crypto assets regulated with SEBI as the main regulator.

Meanwhile, India’s central bank, the Reserve Bank of India (RBI), urges the government to forbid completely Cryptocurrency, noting that a partial ban won’t work. RBI Governor Shaktikanta Das said that the central bank serious and great concern regarding 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.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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