India Moves Closer to Regulated Crypto Oversight with SRO Proposal

India's crypto sector is moving closer to regulation as the country's Parliamentary Standing Committee on Finance has recommended an interim regulatory framework for cryptocurrencies through Self-Regulatory Organisations (SROs).

The committee's 36th Report on the proposed Securities Markets Code, 2025, tabled in Parliament on July 23, suggested allowing industry-led SROs to oversee the sector under the supervision of a designated regulator such as SEBI or the RBI.

The panel noted that India should introduce clear legal definitions for different types of Virtual Digital Assets (VDAs) because not every crypto asset should be regulated in the same way. Some digital assets may qualify as securities, others as derivatives, while some may require a separate regulatory category.