GIFT City To Introduce Regulatory Framework For Crypto Exchanges, Tokenisation Entities Next Year: Report

The IFSCA, which governs GIFT City, established the tokenisation committee last year to focus on regulating tokenisation as a technology rather than just cryptocurrencies.

India’s regulatory environment for cryptocurrencies remains unclear.

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India’s GIFT City is gearing up to introduce a regulatory framework for cryptocurrency exchanges and tokenisation entities in 2025, as reported by NDTV Profit based on source inputs. This initiative, led by the International Financial Services Centres Authority (IFSCA), is expected to set the stage for a broader nationwide model.

The forthcoming regulations will be shaped by a report from IFSCA’s Asset Tokenisation Committee, scheduled for submission next year. Initially, the IFSCA will oversee crypto exchanges within GIFT City, but the approach may later expand to include domestic regulators.

As per the report, tokenised assets or cryptocurrencies could eventually be classified alongside equities and debentures under the Securities Contracts (Regulation) Act, paving the way for inclusion in India's domestic regulatory framework.

Focus On Regulating Tokenisation

The IFSCA, which governs GIFT City, established the tokenisation committee last year to focus on regulating tokenisation as a technology rather than just cryptocurrencies. The committee's findings are expected to guide the development of comprehensive regulations for crypto exchanges and other fintech ventures.

Currently, GIFT City’s regulatory sandbox hosts several projects involving the tokenisation of assets like real estate, bonds, and fund units. The introduction of formal guidelines is likely to attract more players to this ecosystem.

No Immediate Plans To Regulate Crypto

Although blockchain and distributed ledger technology are already acknowledged within the IFSCA's techfin category, a media statement issued on Wednesday clarified that the authority has no immediate plans to regulate crypto exchanges or virtual assets.

India’s regulatory environment for cryptocurrencies remains unclear, with the Reserve Bank of India maintaining a cautious stance. Former RBI Governor Shaktikanta Das has previously likened cryptocurrencies to speculative bubbles like the tulip mania.

With GIFT City serving as a testing ground, the anticipated regulations could offer a structured pathway for integrating crypto assets into India’s fintech landscape.

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