India's Parliament Cautiously Approaches Cryptocurrency Regulation
The Parliamentary Standing Committee on Finance in India has recommended that any move to regulate cryptocurrencies and virtual digital assets (VDAs) under the proposed Securities Markets Code should be preceded by wider policy deliberations and coordination among regulators and government departments.
Examining the Securities Markets Code, 2025, the committee noted that the proposed legislation is designed as a technology-neutral framework, allowing tokenized versions of existing securities such as shares, bonds, and units of investment schemes to remain within the ambit of securities regulation.
The panel observed that cryptocurrencies that do not possess the characteristics of securities or derivatives may remain outside the proposed law. The Ministry of Finance stated that virtual digital assets, including cryptocurrencies, are currently outside India's formal regulatory framework except for taxation, anti-money laundering, and reporting requirements.