SEBI Chairman Ajay Tyagi urged mutual funds to avoid investing in crypto-related assets as the government considers new rules for crypto. Speaking at a press conference on Tuesday, Tyagi advised companies to refrain from investing in crypto-related funds until the guidelines and regulations are clear.
“Those who have invested in mutual funds – in crypto-related companies or in foreign companies through funds of funds (FOFs) – I think, before we get clarity on their (crypto)policies, companies should not make such investments. “, – said the head of SEBI.
While the regulatory framework for cryptocurrencies in India is currently unclear, the country is already seeing a significant rise in its popularity. It is also unclear if crypto investments are subject to tax liability in the country.
Tyagi’s comments came after a recent incident with asset management company (AMC) Invesco Mutual Fund. Despite Sebi’s approval, the creation of the blockchain fund was delayed last month due to legal uncertainty.
Recently, during the winter session, there was talk of discussing cryptocurrencies at the Storting. The talks gained further momentum after the Parliamentary Standing Committee on Finance met with cryptocurrency stakeholders to identify potential opportunities and challenges that could arise in connection with cryptocurrency funding and investment.
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The Government of India has officially planned to submit the Cryptocurrency and Official Digital Currency Bill 2021 for discussion in Parliament during the current winter session. However, the bill does not appear among the bills to be considered by the lower house of India after the end of the winter session.
Meanwhile, Indian Prime Minister Modi is increasingly talking about cryptocurrencies in 2021. During the recent Sydney Dialogue, Modi called on democracies to work together to make the most of cryptocurrencies and blockchain technology. He also warned against harmful use.