The Chairman of the Securities and Substitution Board of India (SEBI), Ajay Tyagi, urged common funds to avert investing in crypto-related assets as the authorities considers new cryptocurrency rules. Speaking at a printing conference on Tuesday, Tyagi advised firms to refrain from investing in funds linked to crypto avails until there is clarity on the policy and regulatory framework.

"Those who have invested in mutual funds, — in companies related to crypto-assets or foreign firms through fund-of-funds (FOF) — my thinking is that till we get clarity on its (crypto's) policy, businesses should not make such investments," said the SEBI chairman.

While the regulatory environment for cryptocurrency in India is currently murky, the state has already witnessed an exponential rise in its popularity. It'south also unclear if crypto investments come up with whatsoever tax obligations in the state.

Tyagi's remarks come following the contempo result involving an asset direction business firm (AMC), Invesco Mutual Fund. Despite Sebi's approval, it delayed its blockchain fund concluding month owing to legislative uncertainty.

At that place have been talks most cryptocurrency being discussed in Parliament during the winter session recently. The talks gained further momentum post-obit a parliamentary standing committee on finance's coming together with cryptocurrency stakeholders to identify possible opportunities and challenges that may occur when it comes to crypto financing and investment.

Related: Institutional managers hold a record $72.3B of crypto — CoinShares

The Indian government had formally planned to innovate the Cryptocurrency and Regulation of Official Digital Currency Bill, 2022, for argue in the parliament during its current winter session. The neb, however, does not appear amid the bills that India'due south lower firm volition consider every bit it concludes the wintertime session.

Meanwhile, Indian Prime Government minister Modi has been increasingly vocal regarding cryptocurrencies in 2022. During the recent Sydney Dialogue, Modi urged democratic nations to interact in order to make the most of cryptocurrencies and blockchain technology. He also warned against their malicious use.