India markets regulator bars Kore Digital from fundraising, alleges financial manipulation

India's government is considering placing digital gold under the oversight of both the central bank and securities regulator, according to sources familiar with the matter. The finance ministry has been consulting with regulators, banks, and other stakeholders, with a consensus emerging that digital gold should be treated as a security under the Securities Contracts (Regulation) Act, 1956.

The Securities and Exchange Board of India had previously cautioned investors about digital gold in 2025, stating it operates outside Sebi's purview.

Digital gold assets currently manage around $3 billion, with an average ticket size of ₹100. Industry experts agree that the unregulated segment should be brought under regulatory supervision to protect investors and prevent money laundering. Stakeholders have recommended that every unit of digital gold be backed by physical bullion and that the product come under joint RBI and Sebi oversight.

Digital gold and silver platforms in India have formed the Digital Precious Metals Assurance Council of India to standardize processes and protect customer interests. The council includes major players like MMTC-PAMP and SafeGold, as well as platforms such as PhonePe, BharatPe, MobiKwik, Gullak, Lenden Club, and CRED. The regulators are eagerly awaiting the council's recommendations on how to best regulate the growing digital gold market.