Digital Gold Cos Seek Regulation, Legitimacy

 The article reports that digital gold companies in India are seeking formal regulation from the Securities and Exchange Board of India (SEBI) or another designated authority. The India Bullion & Jewellers Association (IBJA) has written to SEBI, urging it to bring digital gold providers under a regulatory framework to increase consumer trust—especially after SEBI recently warned that digital gold platforms currently operate outside its jurisdiction.

Digital gold has become popular among younger investors due to features like instant liquidity and zero locker costs, but industry players fear that the lack of oversight may expose customers to fraud.

Several digital gold providers say they welcome regulation, arguing that it will reassure customers that their gold is securely stored and can be liquidated on demand. The piece notes strong growth in digital gold purchases—especially during festivals—citing SafeGold’s transaction increase from ₹800 crore to ₹1,950 crore year-on-year during Dhanteras.

Industry stakeholders want clarity from the government on regulatory mechanisms similar to those for gold ETFs, electronic gold receipts, and commodity derivatives. They also request a surveillance system to ensure that gold bought via platforms is actually stored properly.

Overall, the article highlights that formal regulation is now seen as crucial for protecting consumers, strengthening trust, and supporting the growing digital gold market.