Svmuu News: India’s Parliamentary Standing Committee on Finance has recommended that the government establish an interim regulatory mechanism led by an accredited self-regulatory organization to oversee the country’s cryptocurrency and virtual digital asset markets. The committee warned that the lack of a clear legal framework exposes millions of retail investors to operational, custody, and fraud risks. The committee recommended that this self-regulatory organization, operating under the direct supervision of the Reserve Bank of India or the Securities and Exchange Board of India, should enforce standardized codes of conduct covering consumer protection, platform transparency, and token disclosure standards, and be responsible for auditing exchange reserves, mandating the segregation of client funds from corporate funds, and establishing channels for handling user complaints. The committee also emphasized that this interim mechanism must operate under the strict supervision of the central bank or the securities regulator to address macroeconomic risks such as cross-border capital flows, the dollarization of stablecoins, tax evasion, and violations of foreign exchange regulations.