India's Crypto Regulators Face Pressure for Phased Framework
India's Parliamentary Standing Committee on Finance has proposed a phased regulatory framework for cryptocurrencies and Virtual Digital Assets (VDAs) through recognized Self-Regulatory Organisations (SROs), operating under the oversight of a designated statutory regulator such as SEBI or RBI.
The committee, chaired by BJP MP Bhartruhari Mahtab, recommends an SRO-led interim framework, benchmarked to prudential norms familiar to India's wider financial system. Any recognized SRO must set minimum standards on governance, transparency, disclosures, investor protection, grievance redressal, compliance, and codes of conduct, all while operating under the supervision of a statutory regulator.
The report also asks the Ministry of Finance to clarify specific questions before the Securities Markets Code is finalized, including whether crypto investment products will be covered under the proposed code and whether exchanges offering tokenized securities would fall within its scope.