Cryptocurrency exchanges operating in India have endorsed the government's proposal to establish self-regulatory organizations (SROs) for virtual digital assets (VDA), describing the framework as the most viable interim regulatory solution.
Industry leaders argue that the SRO model provides a structured mechanism for oversight while formal legislation remains pending, potentially easing operational uncertainty for market participants.
The endorsement marks a shift toward industry-led governance, with exchanges positioning themselves as partners in compliance rather than adversaries of regulation.
By adopting self-regulatory standards, firms aim to demonstrate responsible conduct and mitigate the risks associated with unregulated trading, which has long been a concern for Indian authorities.
This development occurs against a backdrop of significant regulatory caution.
The Reserve Bank of India has previously advised against the legalization of cryptocurrency, citing threats to financial stability in emerging economies.