The Ministry of Finance is in discussions with SEBI and the Reserve Bank of India ahead of the Union Budget 2026-27 to firm up a regulatory framework for crypto exchanges. As part of early discussions, SEBI is likely to emerge as the primary regulator for crypto exchanges, while the RBI may oversee aspects related to foreign direct investment, cross-border transactions and capital flows.
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 absence of a comprehensive regulatory framework has constrained India's ability to operationalize international commitments such as the OECD's Crypto-Asset Reporting Framework (CARF).
While India has introduced several tax-reporting mechanisms for crypto transactions, experts argue these measures are no substitute for market regulation. These tools largely enable post-facto detection and do not address issues such as market conduct, investor protection and real-time oversight.
