India Takes Step Towards Regulating Cryptocurrency Market

The Indian government is considering a comprehensive law for Virtual Digital Assets (VDAs), according to a recent recommendation by India's Parliamentary Standing Committee on Finance. The committee proposes that a recognised Self-Regulatory Organisation (SRO) oversee the crypto industry until a law is in place. This SRO would function under the supervision of a designated regulator, such as the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI), with investor protection at its core.

Bengaluru-based crypto expert Sreejith Sreedharan notes that this recommendation is 'a welcome and overdue development'. He believes that a phased regulatory framework will help position India as a global leader in the digital asset economy. Sreedharan adds that the country should now translate parliamentary momentum into a clear, future-ready regulatory framework.

India's crypto adoption has been growing rapidly, with Chainalysis' 2025 Global Adoption Index showing that the country is at the forefront of crypto adoption, alongside the US. The report also notes that the Asia-Pacific region accounted for the fastest growth of crypto adoption in the first six months of last year.

According to Statista, revenue in the cryptocurrencies market is projected to reach $9.1 billion in 2026 in India. While the US generates the highest estimated annual market revenue at $15.1 billion and leads transaction volumes, India ranks at the top globally in total retail adoption and user numbers.