India Considers Risk-Based Crypto Licensing and New Custody Rules

[cryptoenthusiast]

Proposed frameworks include a dedicated VDA law classifying tokens by risk, licensing requirements for exchanges and custodians, standardized conduct-of-business rules and full separation of user funds. Regulators also want deeper reporting requirements, including real-time trade data and reserve transparency, plus dedicated rules for tokenized real-world assets.

[Abdul Khan]

Risk-based licensing might finally bring structured clarity to India’s crypto scene.

[Nahid Hossen]

Custody rules were long overdue—good move by regulators.