Indian lawmaker proposes tokenization bill: promoting the development of on-chain economic systems

[Crypto World] Indian Parliament Member Raghav Chadha recently formally proposed a noteworthy bill in the Indian Rajya Sabha—introducing a dedicated “Tokenization Act.” The core goal of this proposal is clear: to establish a comprehensive legal framework that enables blockchain technology to better serve the digital transformation of real-world assets (RWA).

This represents a key shift in India’s policy approach. In the past, the government mainly focused on taxing and regulating “speculative” cryptocurrency trading, but now the mindset has changed—moving away from simple restrictions toward building an orderly, regulated on-chain economy that benefits India’s middle class.

Chadha’s bill has several highlights worth noting. First, he emphasizes that asset tokenization is essentially about achieving “financial democratization”—allowing ordinary people to participate in asset investments that were previously inaccessible through fractional ownership models. He even describes it as “one of the most transformative financial technology innovations of the 21st century.”

What are the specific steps? Chadha suggests establishing a regulatory sandbox, allowing fintech companies to experiment and innovate with tokenized products under the supervision of Indian regulators in a controlled environment. At the same time, by clearly defining the legal status of “tokenized assets,” he aims to eliminate the various ambiguities currently plaguing India’s digital asset market.

He also raises an interesting warning: if India does not hurry to develop its own legal framework, it could face the risk of sovereignty data and economic power flowing out of the country—assets might be transferred to foreign networks for unregulated trading. This perspective is indeed worth pondering.