7 December 2021
The Securities and Exchange Board of India (SEBI) has issued a circular addressing to curb investment financial advisors in the country from offering any financial advice on Cryptocurrencies and similar unregulated markets.
An official circular by SEBI noted that investment advisors have been found involved in unregulated activity by advising clients on Crypto market investment. The circular issued by SEBI notified possible legal action under the SEBI Act 1992.
The circular stated, “It has come to the notice of SEBI that some registered Investment Advisers are engaged in unregulated activity by providing a platform for buying/ selling/ dealing in unregulated products including digital gold. Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities. Any dealing in unregulated activities by Investment Advisers may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder.”
Reportedly, this warning from the chief securities regulator in India comes at a time when global Crypto adoption in the country is rising exponentially. A report issued by Chainalysis stated that Indians invested over $4 billion in the crypto market in 2021 compared to just $20 million last year.
Following numerous insider reports of possible framework finalization this year, the state of Crypto regulations in India remains undetermined. Although, the state of regulations doesn’t seem to have impacted the general population, as evident from the massive growth in their Crypto investment.
Moreover, monumental growth in Crypto investment of an Indian crypto firms is making a name world over with two unicorns in the form of CoinDCX and CoinSwitch Kuber coming this year itself.
Besides, huge venture capital firms like a16z or the investment arm of Coinbase and several others have their eyes set on India. The latest report regarding crypto regulations indicated the government would take a measured step and treat Bitcoin as an asset.