India Committee Proposes SRO-Led Transitional Framework for Crypto Assets

India's Parliamentary Standing Committee on Finance submitted Report No. 36 on July 23, recommending a transitional regulatory framework for crypto assets and virtual digital assets led by self-regulatory organizations and supervised by the Reserve Bank of India or the Securities and Exchange Board of India. According to Foresight News, the framework would set minimum standards for governance, transparency, disclosure, investor protection, compliance, and conduct. The committee said a phased, SRO-led approach is currently the most suitable path until broader policy discussions are completed. It also recommended that the finance ministry provide a clearer legal definition for virtual digital assets and clarify whether crypto investment products fall under the proposed Securities Market Code, as well as whether exchanges offering tokenized securities are covered by the code. The report said India's current crypto regulation is limited to taxation, anti-money laundering compliance, and reporting obligations, and that crypto assets have no formal statutory status. It added that crypto assets are not included in the Securities Market Code.