Tuesday, August 16, 2022

India may launch the first cryptocurrency exchange-traded fund (ETF) in Asia this year.

The Takeaway:

The first cryptocurrency exchange-traded fund (ETF) in Asia may be launched in India this year, despite the government's ongoing regulatory confusion and mixed messages.

The product will be launched as a joint venture between Mumbai-based Cosmea Financial Holdings and Hyderabad-based Kling Trading India. The venture, named Torus Kling Blockchain IFSC, stated that it would launch India’s first crypto ETF by the end of the current financial year. According to reports in local media on Jan. 14, the two firms signed a memorandum of understanding with the Bombay Stock Exchange’s international arm, India INX.

 

ETFs will be traded on GIFT City’s International Financial Services Centre.

The crypto-based product will be traded on GIFT City’s International Financial Services Centre (IFSC). Gujarat International Finance Tec (GIFT) City is a planned central business district in Gandhinagar in the city of Gujarat. The Torus Kling crypto futures ETF will be launched in a sandbox environment that allows regulated firms to launch and test products under strict conditions. The new ETF has yet to receive full regulatory approval, and Indian policymakers have been delaying the law on cryptocurrencies constantly.

 

The crypto exchange has already made an application to IFSC Authority under the regulatory sandbox.

India INX’s managing director and CEO, V. Balasubramaniam, said that the exchange has already made an application to IFSC Authority under the regulatory sandbox. Once approved, Indian crypto investors will be able to gain exposure to the fund using the Reserve Bank of India’s “liberalized remittance scheme” channel. Under the scheme, which the central bank launched in 2004, residents are permitted to remit up to $25,000 per year for investment and other purposes. Torus Kling Blockchain IFSC’s CEO, Krishna Mohan Meenavalli, said that “ETFs allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges.”

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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