India Can Improve Crypto Regulation with Interim Framework

The Indian government has been slow to regulate the growing crypto market, but a recent report from the Parliamentary Standing Committee on Finance suggests that interim regulation can improve investor protection and pave the way for comprehensive digital asset laws.

The report highlights the regulatory gap in India's existing securities framework, which excludes Virtual Digital Assets (VDAs). This has led to uncertainty and lack of safeguards for investors, with millions of Indians owning or trading digital assets without dedicated market conduct standards, disclosure requirements, or grievance redressal mechanisms.

A well-designed interim framework can strengthen investor protection, improve market conduct, and provide regulatory clarity while policymakers continue developing a long-term legislative approach. This would be a pragmatic step forward for India's crypto ecosystem.