The Ministry of Finance is in discussions with SEBI and RBI ahead of Union Budget 2026-27 to establish a regulatory framework for crypto exchanges. Under the proposed framework, SEBI is likely to emerge as the primary regulator for crypto exchanges, requiring all Indian exchanges to register for tighter supervision of trading platforms, disclosures, and investor protection. The RBI may oversee aspects related to FDI, cross-border transactions, and capital flows. The absence of comprehensive regulation has constrained India's ability to implement international commitments like the OECD's Crypto-Asset Reporting Framework (CARF). Enforcement agencies have also highlighted money laundering and terror financing risks, prompting closer scrutiny of crypto platforms.