The Parliamentary Standing Committee on Finance has recommended an interim self-regulatory framework for the VDA sector and sought greater clarity on how digital assets should be classified under the proposed Securities Markets Code

While the recommendations are not binding, industry executives believe they signal Parliament’s strongest acknowledgement yet of the regulatory vacuum surrounding India’s crypto sector and could lay the groundwork for a broader regulatory framework

Industry stakeholders say different categories of digital assets should be regulated based on their economic function rather than through a one-size-fits-all framework, with multiple regulators overseeing different segments

For…