Growing signs of India’s relationship with cryptocurrencies
The Securities and Exchange Board of India (SEBI), India's securities regulator, has approved the first ETF, that invests in cryptocurrency companies like Coinbase, Bitfarms, and MicroStrategy. The CoinShares Global Blockchain ETF from Invesco gives exposure to companies involved in the cryptocurrency market.
According to local news outlets, the Indian regulator has approved Invesco's CoinShares Global Blockchain ETF Fund of Fund.
India is currently debating how to regulate the cryptocurrency market. The ETF is the first of its kind to receive regulatory approval.
Indian securities regulator's approval of a crypto-related ETF is a positive sign for Indian crypto investors. According to the most recent regulatory status, the government may classify cryptocurrencies as commodities. The government is developing a central bank digital currency (CBDC), with trials beginning as early as next month. Despite the government's lack of a position, the country's youth have been particularly enthusiastic about the crypto market, and investments have remained strong.
Furthermore, the Ministry of Finance, SEBI, and RBI are working together to regulate digital gold and crypto assets. Digital gold may be classified as a security under the Sebi Act and Securities Contracts Regulation Act. There is also a raise in concerns about unchecked growth in such investments without the same investor protections as regulated securities.
The Indian government intends to address concerns of transparency, absurd claims, and high promises made by some unregulated asset companies to entice investors.
According to Bloomberg, Indian Prime Minister Narendra Modi chaired a review meeting on virtual money. This week, India's parliamentary finance panel will meet with industry professionals and organizations to discuss the obstacles and prospects in crypto finance. These meetings are some of the evidence of India's growing interest in cryptocurrency.
Even though cryptocurrencies were banned in 2018, the country's Supreme Court overturned the restriction earlier this year following pleas from the industry.
CBW - External Analyst