India Delays Crypto Regulation Amid Wider Policy Consultation

The Parliamentary Standing Committee on Finance in India has recommended that any move to regulate cryptocurrencies and other virtual digital assets (VDAs) under the proposed Securities Markets Code should be preceded by wider policy deliberations and coordination among regulators and government departments.

Examining the Securities Markets Code, 2025, the committee noted that the proposed legislation has been designed as a technology-neutral framework, allowing tokenised versions of existing securities such as shares, bonds, and units of investment schemes to remain within the ambit of securities regulation.

However, the panel observed that cryptocurrencies that do not possess the characteristics of securities or derivatives may remain outside the proposed law. According to the Ministry of Finance, virtual digital assets that do not fall within the definitions of 'security' or 'derivative' under the Securities Contracts (Regulation) Act, 1956 or the Securities Markets Code may remain outside the purview of the definition of 'securities', notwithstanding their digital nature or the terminology used to describe them.