India finally presents crypto oversight plan after RBI, tax office push for ban

A new policy has emerged in India, as a parliamentary committee has asked the Indian government to allow industry-run Self-Regulatory Organizations to regulate India’s crypto market under the auspices of the Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI).

This presents a temporary solution for the 39 million people who trade digital assets without any regulation to protect them.

An interim watchdog while a permanent legislation awaits

The Parliamentary Standing Committee on Finance made the recommendation in its 36th report on the proposed Securities Markets Code, 2025. The report was brought before Parliament on July 23. The panel believes recognized SROs should enforce conduct standards for now, while proper crypto legislation is in the works.  

The Self-Regulatory Organizations (SROs) would be under the supervision of the Reserve Bank of India or the Securities and Exchange Board of India. 

Utmost priority will be placed on investor protection, with SROs expected to audit exchange reserves, separate customer money legally from company balance sheets, and manage complaints from customers. 

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