The Indian parliamentary panel has backed a plan to let the country’s crypto industry regulate itself for now until a comprehensive legal framework is enacted. The Parliamentary Standing Committee on Finance made the suggestion, and crypto firms across the country have welcomed it.
What the Panel Wants
The committee wants a self-regulatory organization, or SRO, to step in as a stopgap. This body would set rules for the industry, keep things transparent, and push firms to follow proper standards. It would still work under a bigger regulator, most likely the Reserve Bank of India or the Securities and Exchange Board of India. The panel was clear that protecting investors and keeping firms accountable should sit at the heart of this setup.
Why the Industry is Pleased
Crypto exchanges say the move could finally cut through years of confusion. Right now, India taxes 30% on crypto gains and takes 1% TDS on every transaction, yet there is still no proper law for digital assets. This gap has left investors and companies guessing about licensing rules and basic protections.
A risk made clear by cases like the Rs 20,000 crore GainBitcoin scam, where a company co-founder was arrested for allegedly building the technology behind a fraud that drained thousands of investors.
Industry representatives said a supervised self-regulatory framework would enable companies to operate under common standards while giving regulators greater visibility into market risks. They added that the proposal offers a practical interim approach in the absence of a dedicated regulatory framework, moving beyond a regime centered primarily on taxation.
The panel’s proposal does not create new rules overnight. But it does show the government may be ready to move past uncertainty and toward proper structure. If lawmakers accept the idea, India could get its first real system for crypto oversight, even as work continues on full legislation.
For now, the industry sees this as a step in the right direction, one that could bring order to a space that has waited years for clear direction.
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