📷 Image: Wikimedia Commons / Marie-Lan Nguyen
Technology
India Eyes DeFi Regulation to Bridge Gaps in Growing VDA Ecosystem
✍️ Pioneer Edge
🗓 04 Aug 2026, 10:27 PM
👁 4
India is exploring regulatory measures to address gaps in the rapidly expanding decentralized finance (DeFi) ecosystem, focusing on the VDA framework.
India is taking steps to regulate the burgeoning decentralized finance sector, aiming to close regulatory gaps that have emerged as the VDA ecosystem expands.
The government has identified several areas where current oversight is insufficient, including consumer protection, anti-money laundering compliance, and the classification of digital assets.
In response, officials are drafting guidelines that would require DeFi platforms to register with the Securities and Exchange Board of India, disclose operational details, and adopt robust security protocols.
If enacted, the new framework could enhance investor confidence, curb illicit activity, and position India as a responsible hub for global DeFi innovation.
The government has identified several areas where current oversight is insufficient, including consumer protection, anti-money laundering compliance, and the classification of digital assets.
In response, officials are drafting guidelines that would require DeFi platforms to register with the Securities and Exchange Board of India, disclose operational details, and adopt robust security protocols.
If enacted, the new framework could enhance investor confidence, curb illicit activity, and position India as a responsible hub for global DeFi innovation.