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India moves to regulate digital gold as a security with physical backing rules

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The Indian finance ministry has reached out to regulators, banks, and other stakeholders seeking feedback on digital gold oversight. A broad consensus has emerged among these parties that digital gold should be classified as a security under the Securities Contracts (Regulation) Act, 1956. The move comes after warnings about unregulated digital gold products were raised with Sebi in 2025. Authorities are now working on a framework that would require physical backing for digital gold offerings. The proposed regulations aim to bring greater transparency and investor protection to the digital gold market.

Read the full story at Times of India

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