Weeks After RBI Raised Concerns, Parliament Panel Proposes Crypto Watchdog

A Parliamentary Standing Committee on Finance has recommended that the government consider allowing a recognised Self-Regulatory Organisation (SRO) to oversee the crypto industry until a comprehensive law for Virtual Digital Assets (VDAs) is in place.The proposed SRO would function under the supervision of a designated regulator such as the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI), with investor protection at the heart of the proposal. The recommendation comes at a time when cryptocurrencies are taxed in India and exchanges share transaction data with anti-money laundering authorities, but the country still lacks a dedicated legal framework governing digital assets. The committee has urged the government to examine the need for a statutory framework covering cryptocurrencies, non-fungible tokens (NFTs) and decentralised finance (DeFi) tokens. The panel has also stressed that any future securities law should remain technology-neutral.