Supporting the Need for a Regulatory Framework for Virtual Digital Assets in India

Published July 30, 2026 at 12:33 AM UTC

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Key Points

Establishing a regulatory framework for VDAs ensures financial stability.
An interim SRO under RBI or SEBI can mitigate risks like money laundering and tax evasion.
Aligns with global trends in developing digital asset regulations.
Safeguards investors and promotes a transparent digital asset market in India.

Background History

The Parliamentary Standing Committee on Finance has been actively engaged in discussions regarding the regulation of Virtual Digital Assets (VDAs) in India. Previous sessions have involved consultations with the Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI) to assess the implications of VDAs on financial stability, taxation, and investor protection. These deliberations have highlighted the urgent need for a structured regulatory approach to address the challenges posed by the rapidly evolving VDA sector.

The call for a comprehensive regulatory framework for Virtual Digital Assets (VDAs) in India is a crucial step towards ensuring financial stability and protecting investors. The rapid growth of the VDA ecosystem has exposed significant regulatory gaps, making it imperative to establish clear guidelines and oversight mechanisms. An interim Self-Regulatory Organisation (SRO) under the supervision of the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI) can provide immediate oversight, mitigating risks associated with money laundering, tax evasion, and market manipulation. This approach aligns with global trends where countries are proactively developing regulatory frameworks to manage the complexities of digital assets. Implementing such measures will not only safeguard investors but also foster a more secure and transparent digital asset market in India.