India moves to place digital gold under securities and central bank oversight
The finance ministry has asked regulators and industry players to treat digital gold as a security, proposing RBI and SEBI supervision.
The Indian finance ministry has solicited input from regulators, banks and other market participants, finding widespread agreement that digital gold ought to be treated as a security. Stakeholders recommend that the product fall under the Securities Contracts (Regulation) Act, 1956 and be overseen by both the Reserve Bank of India and the Securities and Exchange Board of India. SEBI had earlier cautioned that digital gold lies outside its jurisdiction, noting it is not a notified security nor a commodity derivative.
Industry estimates place the digital gold market at about $3 billion, with an average investment of ₹100 per customer. A bank executive, speaking anonymously, emphasized that one outlet lack of regulation exposes investors and urged the government to adopt the proposed framework. The ministry has now submitted these recommendations for official action.
Why it matters
Regulating digital gold could safeguard investors and integrate a fast-growing market into India's financial oversight framework.
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