Indian Crypto Regulators Push Forward with Interim Framework
India's crypto regulatory landscape is moving towards greater clarity as the Parliamentary Standing Committee on Finance has proposed an interim regulatory structure for virtual digital assets (VDAs). The committee's report, part of its 36th report on the Securities Markets Code, 2025, outlines a phased approach that balances innovation with necessary regulatory oversight.
The proposed framework involves establishing an interim regulatory framework through recognized self-regulatory organizations (SROs) until dedicated VDA legislation is introduced. SROs would be brought under the supervision of a designated regulator to ensure effective oversight and accountability.
The committee also recommends introducing clearer legal classifications for VDAs, recognizing that different digital assets may have characteristics similar to securities, derivatives, or other asset classes. This clarification would help in regulating crypto investment products and tokenized securities under the suggested Securities Markets Code.