Digital gold may face RBI and Sebi oversight with physical bullion backing

The government is considering tighter regulation of digital gold, a largely unregulated segment managing around three billion dollars in assets. Discussions are underway to require physical bullion backing for every unit of digital gold sold.

The Reserve Bank of India and Sebi are being considered as joint regulators to oversee the sector. Stakeholders have signalled agreement that bringing this popular investment product under formal regulatory supervision is urgently needed to ensure investor protection.