The World Gold Council (WGC) has formally requested the Union Finance Ministry and the Reserve Bank of India (RBI) to formulate comprehensive guidelines and a regulatory framework for the digital gold business in India. The council emphasized the necessity for checks and balances to ensure the security of digitally purchased gold by customers.
In its presentations to the authorities, the WGC highlighted the need for a transparent mechanism for buying and holding gold digitally. As per the council’s data, over 120 million customers have engaged in purchasing digital gold, with nearly 40 million currently holding it.
Sachin Jain, Regional CEO of WGC India, stated, “There is a need to facilitate the orderly growth of the digital gold market to protect and promote micro-savings in gold through transparent digital gold channels and to deter any unscrupulous fly-by-night operators from misusing the emerging opportunity. The government should consider bringing out appropriate guidelines and regulatory oversight for the digital gold business aligned with the broader economic agenda on the digitalisation of assets.”
The WGC’s call for regulation aims to bolster the digital gold market’s integrity, ensuring that customer investments are secure and that the market operates transparently. This move is seen as essential to support micro-savings in gold, a popular investment in India, and to prevent any potential misuse by dishonest entities.
The council’s initiative comes at a time when digital assets are gaining significant traction in India. By urging the government to introduce a regulatory framework, the WGC aims to align the digital gold market with the country’s broader economic goals of asset digitalisation.
The WGC’s proposal includes the implementation of stringent guidelines to oversee the digital gold market, ensuring that all transactions are conducted transparently and that customer assets are safeguarded. This regulatory oversight is expected to foster trust and stability in the market, encouraging more customers to consider digital gold as a viable investment option.
The proposed guidelines by the WGC are anticipated to address various aspects of the digital gold market, including the establishment of secure platforms for transactions, mechanisms for verifying the authenticity of digital gold, and protocols for customer protection. By doing so, the council hopes to create a robust framework that supports the sustainable growth of the digital gold market in India.
WGC’s advocacy for a regulated digital gold market underscores the importance of protecting customer investments and promoting transparency. The council’s recommendations, if implemented, are expected to enhance the credibility and reliability of digital gold as an investment, fostering its growth in the Indian market.
