Ajay Tyagi, chairman of the Securities and Exchange Board of India (SEBI), has urged mutual funds to avoid investing in cryptocurrency-related assets as the government considers new cryptocurrency regulations. At a press conference on Tuesday, Tyagi advised companies to refrain from investing in cryptocurrency-related funds until there is clarity in the guidelines and regulations.
“Those who have invested in mutual funds – in companies related to cryptocurrency groups, or foreign companies through a Fund of Funds (FOF) – I believe that until we have clarified their (cryptocurrency) policy, companies should not make such an investment,” said President . SEBI.
While the regulatory framework for cryptocurrencies in India is currently unclear, the country is already experiencing exponential growth in popularity. It is also unclear whether investing in crypto is associated with tax liabilities in the country.
Tyaga’s comments come in the wake of a recent incident involving the asset management company’s (AMC) Invesco Mutual Fund. Despite Sebi’s approval, it delayed the creation of a blockchain fund last month due to uncertainty in legislation.
There has recently been talk of cryptocurrencies being discussed in parliament during the winter session. Negotiations gained further momentum after the Parliamentary Finance Committee met with cryptocurrency stakeholders to identify potential opportunities and challenges that may arise in terms of financing and investing in cryptocurrency.
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The Indian government has officially planned to submit the official crypto- and digital currency regulation law 2021 for parliamentary debate in its current winter session. However, the bill does not appear among the bills to be considered by the House of Representatives at the end of the winter session.
Meanwhile, in 2021, Indian Prime Minister Modi is increasingly talking about cryptocurrencies. During the recent Sydney dialogue, Modi called on democracies to work together to get the most out of cryptocurrency and blockchain technology. He also warned against harmful use.