The Ministry of Finance is in active discussions with SEBI and RBI ahead of Union Budget 2026-27 to establish a comprehensive regulatory framework for crypto exchanges. Under the proposed structure, SEBI is likely to emerge as the primary regulator for crypto exchanges, overseeing trading platform supervision, disclosures, and investor protection norms. Meanwhile, RBI may handle aspects related to foreign direct investment, cross-border transactions, and capital flows in the crypto space.
All Indian crypto exchanges would be required to register with SEBI under this framework for tighter oversight. The absence of comprehensive regulation has constrained India's ability to implement international commitments like the OECD's Crypto-Asset Reporting Framework (CARF). Officials noted that enforcement agencies have highlighted money laundering and terror financing risks, prompting closer scrutiny of crypto platforms operating in India.
