Bharat Web3 Association Establishes Self-Regulatory Framework For India’s Crypto Industry

Bharat Web3 Association (BWA) has launched an independent Self-Regulatory Body (SRB) for India’s virtual digital asset (VDA) sector. The body will encourage BWA members to follow voluntary guidelines on governance and compliance.

How Will The Self-Regulatory Body Operate?

A self-regulatory body is an industry-led mechanism that develops standards and encourages adherence to responsible practices. According to the release, BWA’s SRB will encourage its members to follow the association’s voluntary guidelines. These draw on global best practices and Reserve Bank of India (RBI) frameworks for self-regulatory organisations, including in the fintech sector.

The association appointed Rohit Kumar Singh, former Secretary, Department of Consumer Affairs, as chairperson of the SRB. Praggya Das, former Adviser-in-Charge of the RBI’s Monetary Policy Department, has been appointed a member.

Dilip Chenoy, chairperson of BWA, said, “BWA has consistently advocated for risk mitigation and for compliance-focused regulation of the VDA sector in India. With the constitution of the SRB, I am pleased that BWA has acted on its commitment to fostering compliance within the sector.”

What Will The Body Focus On?

The association said the SRB’s guidelines would cover cybersecurity, safeguarding digital assets and customer data, transparent token listings, consumer protection, grievance redressal, fair trade, market integrity and responsible marketing and communications.

According to the release, the body will also conduct periodic reviews of governance and compliance practices, including those relating to anti-money laundering and countering the financing of terrorism (AML/CFT). It will recommend corrective measures to help members strengthen their practices.

Praggya Das said the launch was timely given the sector’s expansion, noting that about 75 per cent of VDA investors were aged 18–35 and adoption was growing in Tier 2, 3 and 4 cities. She said voluntary standards for transparency, cybersecurity, consumer protection and grievance redressal could instil market discipline, build trust and help safeguard retail investors’ interests.

The launch comes amid wider discussions on regulating the sector. In its 36th report on the proposed Securities Markets Code, 2025, presented in Parliament on July 23, 2026, the Parliamentary Standing Committee on Finance recommended considering an interim regulatory mechanism through recognised self-regulatory organisations under a designated regulator, pending a comprehensive legislative framework.