US Moves to Regulate Crypto. What Will India Do?

The US push for clearer crypto rules is putting pressure on India to fill its own regulatory gap for virtual digital assets.

Illustration: Dominic Xavier/Rediff

Key Points

• The US senate is advancing the Digital Asset Market Clarity Act, which aims to establish a clear regulatory framework for digital commodities and define the jurisdictions of the SEC and CFTC.
• India's parliamentary standing committee on finance has recommended a statutory and regulatory framework for VDAs and cryptocurrencies, suggesting an interim mechanism through self-regulatory organisations (SROs).
• Industry experts believe the US legislation could serve as an important benchmark for global policymakers, offering learnings on balancing consumer protection, AML compliance, and tax clarity without stifling innovation.
• India currently taxes VDAs and includes crypto entities under AML, but lacks a comprehensive statutory framework for issuance, trading, market intermediaries, and investor protection.

The US senate's move to advance a landmark cryptocurrency Bill is putting a spotlight on India's own efforts to regulate virtual digital assets (VDAs), with a parliamentary panel recently calling for a statutory framework to address the regulatory vacuum surrounding VDAs.