Financial regulator body SEBI warned the financial advisors not to offer advice for the investment of the unregulated assets.
As we can see that crypto space is booming with high rapid adoption globally. Because of the rapid growth in crypto assets, especially Bitcoin, many people are willing to go with investments. And also financial advisors are suggesting investing in digital assets products.
In the latest, the Securities and Exchange Board of India published a guideline to warn the professional financial advisors and ordered them not to suggest their clients for the investment in the unregulated assets.
In the unregulated assets, there is digital gold and also digital assets like Bitcoin & Ethereum.
According to SEBI, if any organisation or institution will found to violate the guidelines then that will be considered to violate Section 12(1) of the SEBI Act, 1992.
Media reports considered that the published notice by SEBI is a part of the recent all-time high of Bitcoin.
Unregulated crypto in India
Through the release warning notice, SEBI didn’t mention the crypto assets but in actual they targeted crypto assets only. Because currently, Indian regulators are working to understand how they can give a perfect asset class for the crypto assets.
Reports also confirmed that Indian government officials are trying to push the crypto in commodities assets class but authorities also have authority to create a special new asset class for the crypto, so that government authorities can easily bring better rules to regulate the crypto market in India.
Crypto Adoption In India
The adoption of digital assets in India is increasing rapidly. If we look at the recent year records, then there are around 15 million crypto investors in India. And more than $1.37 billion Investment locked in crypto by the Indian crypto community.