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

According to reports, the Securities and Exchange Board of India has asked mutual funds companies not get involved in crypto-asset-based investments and have requested that they refrain from investing until Indian legislation is passed.

SEBI Requests Mutual Fund Companies To Wait For Crypto Legislation

Ajay Tiagi, chairman of Securities and Exchange Board of India (SEBI), said on Tuesday that until Indian law is in place regarding cryptocurrency legislation, the regulator doesn’t want mutual funds companies to participate or invest in any crypto asset-based New Fund Offers (NFOs).

India does not have a law that regulates cryptocurrency directly. The Indian government, however is working to create cryptocurrency legislation. Although a crypto bill had been listed for consideration in the winter session, it was not adopted. According to reports, the government has begun revisions of the bill.

Invesco Mutual Fund in India, which manages Indian assets, held back the Invesco Coinshares ETF Fund Fund of Fund’s launch last month. This was despite it being approved by SEBI. This fund invests in the Invesco Coinshares Global Blockchain ETF UCITS. This is India’s first open-ended fund to be approved by 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.

Although the Indian government has yet to make an announcement about whether or not it plans to ban or regulate cryptocurrency, reports suggest that the regulator for crypto assets is SEBI.

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. Shaktikanta Das, Governor of RBI has stated that there are serious concerns about cryptocurrency.

Do you agree with SEBI asking mutual fund firms not to invest crypto assets-based funds until the legislation is passed? Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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