FinMin in talks with Sebi, RBI on crypto exchanges

The Ministry of Finance (FinMin) is in discussions with the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) ahead of the Union Budget 2026-27 to firm up a regulatory framework for crypto exchanges, official sources said.

- MONIKA YADAV

As part of the early discussions in the ministry, Sebi is likely to emerge as the primary regulator for crypto exchanges, while the RBI may oversee aspects related to foreign direct investment (FDI), cross-border transactions and capital flows, an official close to the development said.

Emails sent to the ministry, Sebi, and the RBI remained unanswered until press time.

"Under the proposed framework, all Indian crypto exchanges are expected to register with Sebi for tighter supervision of trading platforms, disclosures and investor protection norms," the official said.

At present, oversight of crypto assets in India is spread across agencies. While tax authorities handle the taxation of virtual digital assets (VDAs), bodies such as the Financial Intelligence Unit (FIU-IND) monitor anti-money laundering compliance, and enforcement agencies probe violations linked to illicit flows. Policymakers have long viewed the lack of a single market regulator as a key gap in the existing regime.

According to sources, multiple government agencies have flagged serious enforcement and monitoring challenges under the current framework.