SEBI chief warns Indian mutual funds on investing in cryptocurrency offerings

The
Chairman
of
the
Securities
and
Exchange
Board
of
India
(SEBI),
Ajay
Tyagi,
urged
mutual
funds
to
avoid
investing
in
crypto-related
assets
as
the
government
considers
new
cryptocurrency
rules.
Speaking
at
a
press
conference
on
Tuesday,
Tyagi

advised

firms
to
refrain
from
investing
in
funds
linked
to
crypto
assets
until
there
is
clarity
on
the
policy
and
regulatory
framework.

“Those
who
have
invested
in
mutual
funds,

in
companies
related
to
crypto-assets
or
foreign
firms
through
fund-of-funds
(FOF)

my
thinking
is
that
till
we
get
clarity
on
its
(crypto’s)
policy,
businesses
should
not
make
such
investments,”
said
the
SEBI
chairman.

While
the
regulatory
environment
for
cryptocurrency
in
India
is
currently
murky,
the
country
has
already
witnessed
an
exponential
rise
in
its
popularity.
It’s
also
unclear
if
crypto
investments
come
with
any
tax
obligations
in
the
country.

Tyagi’s
remarks
come
following
the
recent
event
involving
an
asset
management
firm
(AMC),
Invesco
Mutual
Fund.
Despite
Sebi’s approval,
it
delayed
its
blockchain
fund
last
month
owing
to
legislative
uncertainty.

There
have
been
talks
about
cryptocurrency
being
discussed
in
Parliament
during
the
winter
session
recently.
The
talks
gained
further
momentum
following
a
parliamentary
standing
committee
on
finance’s
meeting
with
cryptocurrency
stakeholders
to
identify
possible
opportunities
and
challenges
that
may
occur
when
it
comes
to
crypto
financing
and
investment.



Related:




Institutional
managers
hold
a
record
$72.3B
of
crypto

CoinShares

The
Indian
government
had
formally
planned
to
introduce
the
Cryptocurrency
and
Regulation
of
Official
Digital
Currency
Bill,
2021,
for
debate
in
the
parliament
during
its
current
winter
session.
The
bill,
however,
does
not
appear
among
the

bills
that
India’s
lower
house
will
consider

as
it
concludes
the
winter
session.

Meanwhile,

Indian
Prime
Minister
Modi

has
been
increasingly
vocal
regarding
cryptocurrencies
in
2021.
During
the
recent
Sydney
Dialogue,
Modi
urged
democratic
nations
to
collaborate
in
order
to
make
the
most
of

cryptocurrencies
and
blockchain
technology
.
He
also
warned
against
their
malicious
use.

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