SEBI Chairman Ajay Tyagi has said that until government policy is clear it would not be ideal to invest in crypto.
Indian market regulator SEBI has advised domestic mutual funds to defer investing in crypto assets until its regulatory framework is clarified. At a press conference on Tuesday, the chairman of the Securities and Exchange Board of India, Ajay Tyagi, said the regulator believes that until government policy is clear, it would not be ideal to invest in companies related to crypto assets.
The SEBI chairman’s statement comes as the government plans to discuss cryptocurrency legislation. The government was supposed to introduce the bill in the winter session of Parliament, which ended last week, but that did not happen. The next session should start in February.
Tyagi also referred to a company’s earlier plans to launch a blockchain mutual fund, pointedly referring to Invesco. In November, Invesco suspended its plan to launch Invesco CoinShares Global Blockchain ETF Fund due to uncertainty surrounding cryptocurrency policy in the country.
Tyagi said if domestic mutual funds seek authorization from the regulator for NFO (new fund offering), he would advise against investing in crypto until there is a digital asset law.
Separately, RBI weighed in on the initial introduction of central bank digital currency (CBDC) in basic form and tested it exhaustively. “Given its dynamic impact on macroeconomic policymaking, there is a need to first adopt basic models and test them exhaustively so that they have minimal impact on monetary policy and the economy. banking system, “the central bank said in its report on the Indian banking sector on Tuesday.
Even though there is no law prohibiting cryptocurrency trading, it is not regulated in India. Through the much anticipated “Cryptocurrency and Official Digital Currency Regulation Bill, 2021,” the government aims to create a framework for the creation of the official digital currency to be issued by RBI. The bill also allows certain exceptions to promote the underlying technology of the cryptocurrency and its uses in the private sector.
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