India’s Financial Committee proposes establishing a temporary self-regulatory framework for cryptocurrency regulation

robot
Abstract generation in progress
Mars Finance reported, citing FinanceFeeds, that India’s Parliamentary Standing Committee on Finance has recommended that the government establish a temporary regulatory mechanism led by an approved self-regulatory organization (SRO) to oversee the domestic cryptocurrency and virtual digital asset markets. The committee warned that the lack of a clear legal framework exposes millions of retail investors to operational, custody, and fraud risks. Under direct supervision from the Reserve Bank of India or the Securities and Exchange Board of India, the SRO would enforce standardized codes of conduct covering consumer protection, platform transparency, and token disclosure standards, and would be responsible for auditing exchange reserves, mandating the segregation of client funds from corporate funds, and setting up user complaint-handling channels. The committee emphasized that the temporary SRO must operate under strict oversight from the central bank or the securities regulator to address macroeconomic risks such as cross-border capital flows, stablecoin dollarization, tax evasion, and violations of foreign exchange management laws.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned