India's Parliamentary Committee Proposes SRO-Led Crypto Regulatory Framework

India's Parliamentary Standing Committee on Finance has proposed an interim framework to oversee cryptocurrencies and virtual digital assets (VDAs). This move comes just weeks after the Reserve Bank of India (RBI) reiterated its concerns over cryptocurrencies before the same parliamentary panel.

The committee's report, released on July 23, 2026, highlights that crypto is taxed and covered by Anti-Money Laundering (AML) rules but lacks formal statutory status. This lack of clear regulation exposes investors to fraud risks and recommends clarifying VDA, crypto, and tokenized securities rules.

The proposed Self-Regulatory Organisation (SRO)-led framework aims to boost investor protection and support adoption by providing a clearer regulatory environment for the industry.