India Mulls Interim Crypto Oversight via SRO
The Indian government is considering a proposal to establish an interim oversight mechanism for the crypto industry. A recommendation from the Parliamentary Standing Committee on Finance suggests allowing a Recognised Self-Regulatory Organisation (SRO) to oversee the sector until a comprehensive law for Virtual Digital Assets (VDAs) is introduced.
Currently, cryptocurrencies in India operate under a limited regulatory framework. While crypto transactions are taxed and exchanges must comply with anti-money laundering reporting requirements, there is no dedicated law governing aspects such as custody, ownership, market conduct, and investor protection.
The proposed SRO would function under the supervision of a designated regulator like the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI). It would create industry standards and strengthen oversight while a broader regulatory framework takes shape.