India Urged to Develop Comprehensive Crypto Regulation Framework
The Indian government is facing calls to establish a comprehensive regulatory framework for virtual digital assets, including cryptocurrencies. The recommendation comes from the Parliamentary Standing Committee on Finance, which has identified gaps in the country's proposed securities legislation.
The committee's report, released on July 23, highlights the need for a clearer definition of virtual digital assets and their place within existing regulations. Currently, India regulates these assets only for limited purposes, such as taxation and anti-money-laundering compliance.
The committee has proposed an interim mechanism involving recognised self-regulatory organisations operating under the oversight of a designated regulator. This would set minimum standards for governance, transparency, disclosures, investor protection, grievance redressal, codes of conduct, and regulatory oversight.