India Parliament Seeks Clear VDA Rules, Recommends Crypto SROs

India's Parliamentary Standing Committee on Finance has proposed an interim regulatory framework for cryptocurrencies and virtual digital assets (VDAs), aiming to establish stronger oversight.

The committee recommended establishing recognized Self-Regulatory Organizations (SROs) to operate under the supervision of a designated regulator, covering minimum standards such as governance, transparency, disclosures, investor protection, grievance redressal, compliance, and codes of conduct.

Lawmakers also urged the government to define virtual digital assets across securities, derivatives, and other financial categories, clarifying whether tokenized securities and crypto investment products fall under the proposed Securities Markets Code.