The Standing Committee on Finance of the Indian Parliament proposes the establishment of a temporary self-regulatory organization for cryptocurrency regulation.

According to FinanceFeeds, India’s Parliamentary Standing Committee on Finance has recommended that the government establish a temporary regulatory mechanism led by a self-regulatory organization (SRO) to oversee the domestic cryptocurrency and virtual digital asset markets. The committee pointed out that the lack of a clear legal framework exposes retail investors to operational, custody, and fraud risks. The SRO would implement codes of conduct under the direct supervision of the Reserve Bank of India or the Securities and Exchange Board of India, covering consumer protection, platform transparency, token disclosure standards, auditing exchange reserves, segregating client funds from corporate funds, and setting up complaint channels. The interim SRO needs to operate under the supervision of the central bank or SEBI to address macroeconomic risks such as cross-border capital flows, the dollarization of stablecoins, tax evasion, and violations of foreign exchange management laws.