Navi Group, a financial company associated with the co-founder of the e-commerce giant in India, Flipkart, Sachin Bansal, has applied to the Securities and Exchange Board of India (SEBI) for registration of the Navi Blockchain Index Fund of Fund (FoF).
Thus, the structure will invest in foreign exchange-traded funds (ETFs) and/or index funds based on the Indxx Blockchain Index.
Furthermore, Navi Blockchain Index FoF is a fund of funds that does not involve investing in shares of crypto; and blockchain companies directly.
The draft law on cryptocurrencies under consideration
The Blockchain Index FoF includes securities of firms from developed and developing countries that use or can benefit from distributed ledger technology (DLT).
Recall that India will regulate cryptocurrencies instead of banning them, according to recent media reports. The accompanying note to the draft law on cryptocurrencies under consideration by the government contained such information, writes NDTV.
Moreover, investors will have a certain amount of time to fulfill the requirements. Authorities may ban non-custodial wallets, according to the media. Therefore, the latter will be a consequence of the fight against money laundering and terrorist financing.
Banning “private cryptocurrencies”
The Cryptocurrency and Regulation of Official Digital Currency Bill will be one of 26 new proposals considered by India’s lower house of parliament, Lok Sabha, when it commences for its winter term next Monday, as per a Tuesday release.
According to the paper, MPs may vote on legislation that establishes “a facilitative framework for the development of the official digital currency” issued by the Reserve Bank of India. The law also recommends banning “all private cryptocurrencies”. With the exception of assets, in order to “advance the underlying technology of cryptocurrency and its purposes.”