The absence of laws or cryptocurrency regulations in India makes offering investment advise neither legal nor illegal- a situation referred in legal parlance as a regulatory grey area. The questions such as –Is this a good time to invest? Should I buy cryptocurrencies this year instead of Gold? What are the downside risks associated with Dogecoin? Why is Elon Musk so influential?
These are the few questions which the Wealth Advisers faced in India during the last week. The wealth managers are unsure whether rendering advise about cryptocurrency trading is permitted under SEBI’s existing regulation and because of this reason they are shying away from offering formal guidance to clients.
It is important to note that cryptocurrencies do not squarely fall within the category of “commodity derivatives” or “securities” under the Securities Contracts (Regulation) Act, 1956.
Source: Economic Times