[Proposal by India's Finance Committee to Establish a Temporary Self-Regulatory Framework for Cryptocurrency Oversight] According to FinanceFeeds, India's Parliamentary Standing Committee on Finance has recommended that the government establish a temporary regulatory mechanism led by recognized self-regulatory organizations (SROs) to oversee the domestic cryptocurrency and virtual digital asset market. The committee warned that the lack of a clear legal framework exposes millions of retail investors to risks related to operations, custody, and fraud. The SRO would operate under the direct supervision of the Reserve Bank of India or the Securities and Exchange Board of India, enforcing standardized codes of conduct covering consumer protection, platform transparency, and token disclosure standards. It would also be responsible for auditing exchange reserves, mandating the segregation of client funds from corporate funds, and establishing user complaint resolution channels. The committee emphasized that the temporary SRO must function under strict oversight by the central bank or securities regulator to address macroeconomic risks such as cross-border capital flows, stablecoin dollarization, tax evasion, and violations of foreign exchange management laws.