Mumbai: The finance ministry of India, the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are working to bring digital gold, along with crypto assets, under some regulatory oversight, as concerns mount over the unchecked growth in such investments without investor protections that apply to regulated securities.

The government plans to address the issues of transparency, outrageous claims and lofty promises made by some companies in unregulated assets to lure investors.

As part of the plan, the government may amend the Sebi Act and Securities Contracts Regulation Act to categorize digital gold as a security, said two officials with direct knowledge of the matter, requesting anonymity.

Prime Minister Narendra Modi on Saturday chaired a meeting with regulators on deciding a long-term strategy for crypto assets. This followed the standing committee on finance holding a meeting on Monday with stakeholders to ascertain their views on ‘opportunities and challenges associated with crypto finance’.

Mint has reviewed a copy of the notice issued by the standing committee for a dialogue with associations and industry experts on crypto. Emailed queries to Sebi and the finance ministry on supervision of digital gold were not answered immediately.

The proposal to regulate the assets comes after Sebi in September and October barred registered brokers and investment advisers from offering digital gold and other unregulated investment products. The regulator said offering such products was a violation of the Sebi Act and, as a consequence, could lead to monetary penalties and, in some cases, licence cancellations.