India Parliamentary Committee Calls for Regulatory Framework for Virtual Digital Assets

The Parliamentary Standing Committee on Finance has called for a comprehensive examination and an appropriate regulatory framework for Virtual Digital Assets (VDAs) in India.

The committee's report on the proposed Securities Markets Code, 2025, noted that the current definition of securities excludes VDAs, creating a 'regulatory grey area' that leads to uncertainty and exposes investors to risks of fraud and market manipulation.

The committee recommended introducing an interim arrangement through recognised Self-Regulatory Organisations (SROs) under the oversight of a designated regulator like the Reserve Bank of India or Securities and Exchange Board of India until a legislative framework is drawn up.