India Panel Recommends Interim Crypto Framework Led by SROs

A parliamentary panel in India has recommended introducing an interim regulatory framework for cryptocurrencies and Virtual Digital Assets (VDAs) to address the lack of clarity in existing regulations.

The committee suggested that a Self-Regulatory Organisation (SRO)-led mechanism could be introduced under the oversight of a designated regulator, pending the establishment of a comprehensive legislative framework.

The proposed interim framework would prescribe minimum standards related to governance, transparency, disclosures, investor protection, and regulatory oversight.

The panel noted that VDAs can have characteristics similar to financial instruments, including investment for financial returns, trading on organised platforms, price discovery through market forces, speculative activity, and exposure to the value or performance of underlying assets.