India's Parliamentary Committee Calls for Comprehensive Crypto Regulation

The Parliamentary Standing Committee on Finance in India has recommended a comprehensive examination and regulatory framework for Virtual Digital Assets (VDAs) like cryptocurrencies. The committee's report, which focuses on the Securities Market Code (SMC), highlights the need for an appropriate regulatory framework to govern VDAs.

The panel noted that nearly 12 crore Indians are part of the VDA ecosystem, citing figures from blockchain analytics company Chainalysis. It emphasized the importance of containing risks, protecting investor interests, and upholding market discipline while drawing up a framework.

The report suggested creating an interim arrangement through recognized Self-Regulatory Organisations (SROs) functioning under the designated regulator's watch until a legislative framework is established. The committee also proposed that such a framework should prescribe minimum standards of governance, transparency, and investor protection.