India Panel Backs Crypto SROs, Skips Securities Law

The panel also asked the government to clarify how crypto investment products, tokenized securities, and exchanges offering tokenized assets will be treated under future rules.

“The position of the Central Government regarding crypto-assets, including Virtual Digital Assets, is that such assets are presently unregulated in India, except for the limited purposes of taxation, prevention of money laundering and reporting requirements,” the report said.

The recommendation followed months of consultations with the RBI, the Income Tax Department, the International Financial Services Centres Authority (IFSCA), crypto exchanges, and industry representatives. The committee also studied regulatory approaches in the UK, Singapore, the US, and the EU before concluding India should adopt a phased framework rather than wait for a comprehensive law.

If adopted, recognized SROs would set standards for governance, transparency, disclosures, investor protection, and grievance redressal while operating under regulatory supervision. The proposal could give exchanges and firms building tokenized financial products more regulatory certainty than the current grey area provides.