This year, the development of the crypto market in India is seen to be erratic with the absence of a clear direction from the government. The government is seen playing a tug of war between following in the footsteps of China's move to ban crypto altogether or regulate the market.
The latest India is of the view that mutual fund investments should not be related to crypto assets. The chairman of the Securities and Exchange Board of India (SEBI), Ajay Tyagi, reportedly stated that the authorities did not want these domestic mutual funds to be involved with crypto until the government issued a crypto asset law.
The SEBI chief’s statement on mutual fund investments related to crypto assets was issued after Invesco Mutual Fund delayed the launch of blockchain funds due to regulatory uncertainty.
Where previously, national securities regulators approved the launch of a blockchain fund for the Invesco Mutual Fund. At that time it was scheduled to open the subscription on November 24. The fund will be India’s first offering to provide exposure to companies around the world to participate in the blockchain/ crypto market space.
So far the Indian government has indeed encouraged the adoption of blockchain technology but not for economic purposes and a medium of transaction.
India this year has twice announced to introduce a crypto bill aimed at banning all crypto assets except CBDC. But lately, the tone has not been so clear when the government is considering other alternatives.
Some policymakers believe that crypto assets could affect India’s macro-economic and financial stability. The central bank of India continues to take an aggressive stance on cryptocurrencies.
Amidst the uncertainty in the crypto market, Indian market players continue to grow rapidly. According to a Chainalysis report in October, the crypto market in India grew 641% from July 2020 to June 2021.
