Crypto News

India’s regulators want mutual funds to distance themselves from crypto-related NFOs

                                                            Indiens Crypto-Saga hatte in diesem Jahr keinen nennenswerten Durchbruch.  Da das regulatorische Klima unklar blieb, ist die Marktaufsichtsbehörde des Landes der Ansicht, dass Investmentfondshäuser keine Fondsangebote im Zusammenhang mit Cryptowährungsanlagen unterbreiten sollten.

SEBI isn’t keen on crypto NFOs

Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi reportedly noted that the regulator does not want domestic mutual funds to develop crypto-based new fund offerings (NFOs) until the government presents a bill for digital assets.

The SEBI chief’s remarks on mutual fund investments related to Cryptocurrency come after Invesco Mutual Fund launched the BlockchainFund postponed due to regulatory uncertainty.

The country’s securities regulator had previously approved the Invesco Mutual Fund to launch its blockchain fund. It should go live for subscription on November 24th. The fund would have been India’s first such offering that would have given companies around the world exposure to participate in the blockchain space.

It is important to note that the Indian government and regulators have endorsed blockchain technology, but not cryptocurrencies.

India’s relationship with crypto

Not much has changed in the last few years. The government should enact not just once, but twice this year, a crypto law aimed at banning “all private cryptocurrencies” before pulling out. Crypto regulation was already one of the trending topics during the winter session of Parliament.

Several policy makers believe that digital currencies could hurt India’s macroeconomic and financial stability. India’s central bank continued to take an aggressive stance on crypto. Prime Minister Narendra Modi, on the other hand, has largely stayed away from hostile comments on the industry and instead stressed the need for regulation.

During his virtual address to the Democracy Summit, Modi said:

“We must also jointly shape global standards for new technologies such as social media and cryptocurrencies so that they serve to strengthen democracy and not to undermine it.”

In the midst of uncertainty, India’s crypto market continued to explode this year. According to the October report by Chainalysis, the market grew 641% from July 2020 to June 2021. India also ranked second in terms of cryptocurrency adoption in August.

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Source: Crypto News Deutsch

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