Parliamentary finance committee calls for regulatory framework for virtual digital assets
The Parliamentary Standing Committee on Finance called for a comprehensive regulatory framework for Virtual Digital Assets (VDAs) in its report on the proposed Securities Markets Code, 2025. The committee highlighted the regulatory grey area created by the exclusion of VDAs from the definition of securities, which increases risks of fraud and undermines investor confidence. It suggested that the government consider interim arrangements through Self-Regulatory Organisations under the oversight of regulators like the Reserve Bank of India or the Securities and Exchange Board of India until a formal framework is established.