Ajay Tagi, chairman of the Securities and Exchange Board of India (SEBI), urged investors to refrain from investing in cryptocurrency-related activities as the government takes into account the new rules on cryptocurrencies. Speaking at a news conference on Tuesday, Tyagi warned that companies should not invest in cryptocurrency assets unless there is a clear policy and regulatory framework.
“People who have invested in mutual funds – through crypto-assets or foreign-funded companies through mutual funds (FOF) – believe that we have not fully clarified their rules (crypto). “Business shouldn’t do that – money,” said the SEBI president.
While India’s cryptocurrency regulatory environment is currently tight, the country is already experiencing a significant increase in its popularity. It is also unknown whether the crypto investment comes with any tax liability in the country.
Tyagi’s comment follows a recent incident involving an asset management company (AMC), the Invesco Mutual Fund. Despite SEBI approval, it postponed its blockchain funding last month due to legal uncertainties.
Recently, the cryptocurrency was discussed in Parliament during the winter. Following a meeting of the Standing Parliamentary Committee on Finance with the holders of cryptocurrencies, the discussion intensified when it came to identifying potential opportunities and potential problems for cryptocurrency financing and investment.
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The Indian government was planning to formally introduce cryptocurrency and the regulation of the official 2021 digital currency law for discussion in parliament during the winter. However, this bill is not included in the bills that will be considered by the lower house of India as it spends part of the winter.
Meanwhile, Indian Prime Minister Modi talks about cryptocurrencies in 2021. In all recent discussions, Modi called on democratic countries to work together to make the most of cryptocurrencies and blockchain technology. He also warned of their abuse.