India advances tokenization legislation: a shift from taxation to building on-chain economic systems

2025-12-17 06:42:14

【ChainNews】India’s political circles have recently sent an important signal — shifting from simply taxing cryptocurrency transactions to building a regulated on-chain economic framework. A politician officially proposed a dedicated “Tokenization Act” in the Federal Council, aiming to empower real-world assets (RWA) through blockchain technology.

The core idea of this proposal is quite interesting: achieving “financial democratization” through fractional ownership of assets. In other words, allowing the middle class to participate in high-value asset investments, rather than being excluded by high barriers to asset ownership.

How exactly will this be done? The bill plans to focus on several aspects. First, establishing a regulatory sandbox to provide a controlled testing environment for fintech companies to test tokenization products under government supervision. Second, clarifying the legal definition of “tokenized assets” to clear legal ambiguities currently plaguing the digital asset market.

The proposer emphasizes that asset tokenization is “one of the most transformative financial technological innovations of the 21st century.” This statement reflects a shift in understanding — from viewing cryptocurrencies merely as speculative tools to recognizing the potential value of blockchain technology in asset management and the financial system.

The underlying risk considerations are also noteworthy: if India does not proactively establish a domestic legal framework, it may face risks of sovereignty data and economic power loss. Put more plainly, if asset trading is left to operate on unregulated foreign networks, India’s own financial control could be weakened. This logic has actually driven a policy shift from “defense” to “building.”

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

20 Likes

Reward
20
6
Repost
Share

Comment

0/400

GweiTooHigh

· 12-18 07:56

India's move this time is pretty good; finally, they're not just focused on collecting taxes, but actually playing for real.

View OriginalReply0

WenAirdrop

· 12-17 07:04

India's move is quite something, shifting from a "harvesting the little guys" tax to building an RWA framework... To put it nicely, it's financial democratization, but in reality, it's just giving retail investors a chance to play with high-end assets. I've seen a lot of regulatory sandboxes, and in the end, it's still the government doing whatever it wants to regulate.

View OriginalReply0

ser_ngmi

· 12-17 07:04

India is really waking up? From harvesting profits to building an ecosystem, this transformation is quite remarkable.

View OriginalReply0

Blockblind

· 12-17 07:03

India's recent moves are quite interesting... from a leek-cutting style taxation to building frameworks, the transition is indeed rapid. But to be honest, whether the RWA path can be successful still depends on what tricks can be pulled off in the regulatory sandbox.

View OriginalReply0

SmartContractPhobia

· 12-17 06:46

India has truly understood the game this time, shifting from harvesting profits to building an ecosystem? The regulatory sandbox approach is still the same old story; the key is how it will be implemented.

View OriginalReply0

RetailTherapist

· 12-17 06:43

India's move is interesting, shifting from cutting leeks to building frameworks... I believe in the regulatory sandbox. --- Financial democratization? Sounds like a dream, but the fractional ownership trick can indeed lower the barriers. --- It's both RWA and tokenization again, still the same old talk... real implementation is what counts. --- Can the middle class participate in high-value assets? They’ll just get cut again. --- It's good to have clear legal definitions, at least better than the current chaos.

View OriginalReply0