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Cryptos Set To Be Regulated In GIFT City Next Year, Country Likely To Follow Suit — Profit Exclusive

Once IFSCA regulations are in place, domestic regulators are expected to follow suit.

Charu Singh

18 Dec 2024, 09:14 AM IST

18 Dec 2024, 02:40 PM IST

(Photo source: Envato)

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A regulatory framework for cryptocurrency exchanges and entities involved in tokenisation is set to be introduced in India’s GIFT City in 2025, according to two people in the know. The regulations are expected to be finalised following the release of a report by the International Financial Services Centres Authority (IFSCA) Asset Tokenisation Committee, which is slated for submission in the coming year.

According to the people quoted above, at first, IFSCA is going to be the regulatory authority for the crypto exchanges in GIFT City. However, it is expected that the model would be followed all over India eventually, with domestic regulators stepping in.

It is also likely that just as equities or debentures are mentioned in the definition of securities under the Securities Contracts (Regulation) Act, tokenised assets or cryptos could eventually be added to this definition for domestic regulations.