India Overhauls Crypto Regulatory Framework Amid Growing User Base
India has initiated a comprehensive review of its VIRTUAL Digital Asset (VDA) regulatory framework, targeting stronger investor protections and clearer operational guidelines for the sector. With over 100 million crypto users, the government is prioritizing licensing standards for exchanges and custodians, alongside transparency in reserves and insolvency protocols.
The proposed overhaul includes heightened oversight of stablecoins and real-world asset (RWA) tokens, while reconsidering the contentious 30% tax and 1% transaction levy. Enhanced market surveillance and reporting mechanisms are expected to accompany the new rules, signaling a maturation of India's approach to crypto regulation.