India's Finance Panel Seeks Regulatory Framework for Virtual Digital Assets

The Parliamentary Standing Committee on Finance has recommended a regulatory framework for Virtual Digital Assets (VDAs) in India.

The committee's report on the Securities Market Code (SMC) calls for a comprehensive examination and an appropriate regulatory framework for VDAs such as cryptocurrencies.

Nearly 12 crore Indians are participating in the VDA ecosystem, according to blockchain data and analytics company Chainalysis.

The committee has discussed reasons why VDAs were being excluded under the proposed changes in the Securities Markets Code since it adopts a 'technology-neutral' definition of securities and such VDAs do not satisfy the legal characteristics of securities and derivatives under the proposed framework.