Recent news reports by the Economic Times of India claims that the Securities and Exchange Board of India (SEBI) has asked mutual fund companies to stay away from crypto-based investments, at least until the Indian government is able to come up with clear cryptocurrency legislation.
Wait for Crypto Legislation — SEBI To Mutual Fund Companies
The Chairman of SEBI, Ajay Tyagi reportedly said that at the moment, no mutual fund company should get involved in any crypto-related new fund offers (NFOs).
For now, there is no legal framework with direct regards to cryptocurrencies in India. But the Indian government has been working round the clock in order to come up with one. In fact, a crypto bill was in the works for consideration during the winter session of the Indian parliament. Somehow, it ended up not being taken up. But now, sources claim government has begun reworking the bill again.
Meanwhile, there has been some serious debates about the position of the Indian government on crypto. Reasonably so, because the government is yet to make an official announcement whether it will outrightly ban or regulate crypto. But now, reports making rounds is that SEBI will be the main regulator for crypto assets.
So Much Uncertainty Around Crypto Regulation In India
There is still a whole lot of regulatory uncertainty around crypto assets in India. Back in November for instance, Indian asset management firm Invesco Mutual Fund still had to delay launching its Invesco Coinshares Global Blockchain ETF Fund. Now this was despite getting the nod of approval from SEBI.
The underlying fund’s portfolio as of Nov. 2 includes Coinbase Global, Bitfarms, Hive Blockchain Technologies, GMO Internet, Kakao Corp. SBI Holdings, Microstrategy, and Bit Digital.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has been very open with its position that the government should completely ban cryptocurrency, with claims that a partial ban will not work. RBI Governor Shaktikanta Das has also been expressive about the central bank’s concerns regarding cryptocurrencies.