India's finance committee seeks SRO oversight to protect VDA investors
India's finance committee just called out the lack of clear rules for Virtual Digital Assets (VDAs) (think crypto, NFTs, and similar digital stuff), which now have around 12 crore users in the country.
They're suggesting a temporary fix: let self-regulatory organizations (SROs) manage things under a government-approved regulator until proper laws are made.
The focus is on making things transparent, protecting investors, and sorting out complaints.
VDAs outside India's securities markets code
Right now, VDAs aren't covered by India's Securities Markets Code since they don't fit as securities or derivatives, leaving a "regulatory gray area" where scams and market tricks can happen.
While VDAs are taxed and checked for money laundering, there's still confusion about their legal status.
The committee says building a solid framework will need teamwork both at home and with other countries to keep investors safe and markets fair.