An Indian legislator calls for the enactment of a dedicated "Tokenization Act"

PANews December 17th News, according to Finance Feeds, to promote the modernization of India’s financial infrastructure, Indian Civilian Party (AAP) legislator Raghav Chadha has officially proposed a dedicated “Tokenization Act.” During his speech in the Indian Federal Council, Chadha pointed out the need to establish a tailored legal framework to leverage blockchain technology to empower real-world assets (RWAs). His proposal marks a significant shift in Indian politics, moving from simply taxing “speculative” cryptocurrency transactions to building a regulated on-chain economy that benefits the country’s middle class. The core of Chadha’s legislative proposal is to achieve “financial democratization” through fractional ownership of assets. Chadha emphasized that asset tokenization is “one of the most transformative financial technological innovations of the 21st century.” He urged the government to set up a regulatory sandbox to allow fintech companies to experiment with tokenization products in a controlled environment supervised by Indian regulators. The bill aims to eliminate the ambiguity currently plaguing India’s digital asset market by clearly defining “tokenized assets” in law. Chadha warned that without domestic legislation, India risks losing sovereignty over data and economic power, with its assets potentially being traded unregulated on foreign networks.