India moved a step closer to formal crypto regulation after Gujarat National Law University (GNLU) released a policy report in New Delhi on Tuesday. The study, backed by former Supreme Court judges and legal experts, lays out five possible paths for structuring digital asset rules in the world's most populous country.
Launch event and research scope
The report, titled “Crypto-Assets in India: Assessing the Case for Regulation,” was produced jointly with the Society of Indian Law Firms. The launch took place at The Lalit hotel and drew former judges from India's Supreme Court and Gujarat High Court. Researchers examined how several jurisdictions regulate crypto and compared them with India's existing measures.
India has already imposed taxes on virtual digital assets and applied anti-money laundering rules to crypto firms. Still, the country lacks a dedicated law for digital assets, a gap the report says leaves market participants guessing about their legal obligations.
Five regulatory models
The study presents five models that policymakers could adopt or adapt:
1.Securities and Exchange Board of India (SEBI) oversight — treating crypto assets as securities under existing capital market rules. 2.Reserve Bank of India (RBI) control — focusing on monetary and stablecoin risks via the central bank's authority. 3.Multi-regulator coordination — different agencies oversee payment tokens, securities-like tokens, and commodities-like tokens separately. 4.A new dedicated authority — building a specialized body from scratch, which carries high administrative costs. 5.Temporary self-regulation under government supervision — the industry polices itself while the state retains veto power, a transitional model used elsewhere.
Prof. S. Shanthakumar, director of GNLU, said the project started as a classroom discussion but grew into a national initiative. He noted that nearly 120 million Indians already participate in crypto activity, a figure that underscores the urgency. The university held consultations in Bengaluru, Mumbai, and Delhi with developers, exchanges, regulators, and legal experts.
Former Supreme Court judge Hima Kohli observed that technology tends to outpace legislation. Another former judge, M. R. Shah, added that taxation marks only an early step toward broader regulation, not the finish line.