Woofun AI reports that India’s Standing Committee on Finance submitted Report No. 36 to Parliament on July 23, advocating for a transitional regulatory framework for crypto assets and virtual digital assets (VDAs) based on self-regulatory organizations (SROs). The proposal mandates oversight by the RBI or SEBI, establishing minimum standards for governance, transparency, investor protection, and compliance. The committee views this phased, SRO-led approach as the optimal interim measure while comprehensive policy discussions continue.

The report advises the Finance Ministry to define VDAs legally, clarify if crypto investment products fall under the Securities Market Code, and determine if exchanges handling tokenized securities are subject to these regulations. It highlights that current Indian crypto regulation is restricted to tax, anti-money laundering, and reporting requirements, lacking formal legal status or inclusion in the Securities Market Code.