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India Proposes Interim Crypto Regulation via Self-Regulatory Organization

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India's Parliamentary Standing Committee on Finance has proposed establishing an interim Self-Regulatory Organization (SRO) to oversee parts of the cryptocurrency industry while broader legislation continues to develop.

The proposal reflects a growing recognition among policymakers that digital assets have become an increasingly significant component of the global financial system.

A functioning SRO could help establish operational guidelines covering areas such as cybersecurity, consumer disclosures, internal controls, risk management, advertising standards, and market integrity.

India has emerged as one of the world's largest cryptocurrency markets in terms of user adoption, with blockchain developers, fintech companies, digital asset exchanges, and Web3 startups expanding despite regulatory uncertainty.

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