Several projects are already underway in the IFSCA sandbox, including the tokenization of real estate, fund shares and bonds, according to the people cited above. Once the committee’s recommendations are made public, it is expected that more entities will come into the regulatory fold and seek to operate under the new framework, they said.
The IFSCA’s inclusion of technologies such as blockchain and distributed ledger technology positions crypto exchanges as a potential part of GIFT City’s broader fintech ecosystem.
However, in a press release issued by the IFSCA on Wednesday, it was mentioned that there is no move on its part to regulate crypto exchanges, cryptocurrencies or associated virtual assets within the IFSC.
The final regulations will likely pave the way for greater traction from entities seeking to enter this emerging regulatory landscape.
Currently, India does not have a clear regulatory framework for crypto exchanges or other tokenization projects. The Reserve Bank of India has consistently maintained a negative view towards cryptocurrencies, with former Governor Shaktikanta Das comparing them to the rush for tulips.
