Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi on Tuesday said the market regulator does not want mutual fund houses to come up with new fund offers (NFOs) based on crypto assets unless the government comes up with regulations. for cryptocurrency.
Investing and trading in crypto assets is still allowed in India, but the laws are still unclear as to how they are regulated and taxed.
Tyagi’s remarks came after asset management company (AMC), Invesco Mutual Fund, last month delayed its blockchain fund due to legislative uncertainty despite SEBI approval.
Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF) was the first scheme in India to get approval from SEBI which provides exposure to global companies participating in the blockchain ecosystem. The plan was originally scheduled to open for subscription on November 24.
“From the developments of the past few days, Indian parliamentarians have been meeting participants in the country’s digital asset industry, which will likely culminate in a new legislative framework being drawn up. In light of the above, we believe that investors should be able to It is important to fully understand all the aspects before taking a long-term investment decision,” Invesco Mutual Fund said in a note.
Another AMC, Navi Mutual Fund, which is part of the Sachin Bansal-backed Navi Group, had also applied for a Blockchain Index Fund of Funds (FOF) with SEBI.
Tyagi’s comments technically mean that the regulator will not allow any blockchain or crypto funds until the rules are clarified.
Talks about regulating cryptocurrencies have gained momentum after a Parliamentary Standing Committee on Finance met cryptocurrency stakeholders on Monday to explore the opportunities and challenges associated with cryptocurrency financing. Prime Minister Narendra Modi also chaired a meeting where he spoke about the concerns of unregulated crypto markets.
A bill to regulate cryptocurrencies in India was to be introduced in the Parliament in the recently concluded session. However, according to media reports, it is not ready yet.
Despite repeated exposure to economic, financial, operational and legal risks by the Reserve Bank of India, crypto investors in the country have grown manifold.
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