India to Regulate Digital Gold Market in 2024

The Indian government is preparing to introduce a formal regulatory framework for digital gold, with implementation potentially beginning as early as next year. This significant move follows extensive consultations involving the Digital Precious Metals Assurance Council of India (DPMACI), along with the finance and consumer affairs ministries, and the Reserve Bank of India.

The primary objective behind these forthcoming regulations is to bolster consumer protection and actively prevent fraudulent activities within the rapidly expanding digital gold market. Policymakers are focused on creating a secure environment for investors.

Pivotal Role of DPMACI

The Digital Precious Metals Assurance Council of India (DPMACI) is playing a crucial role in this regulatory development. Established just three months ago, it functions as an industry-led self-regulatory body.

DPMACI includes leading digital gold platforms like SafeGold, MMTC-PAMP, and Augmont. Fintech companies such as PhonePe and Gullak are also key members of this council. Notably, investors accumulated approximately 10 tonnes of gold through digital platforms during the fiscal year 2026.

How Digital Gold Functions

Digital gold offers users the ability to buy and sell 24-karat gold through various fintech applications and online platforms. This accessibility allows for investments in small denominations.

Purchases are accessible, often starting from as little as ₹10 or ₹100. Platforms guarantee that an equivalent amount of physical 24-karat gold is securely stored in a vault. Buyers have the flexibility to either sell their digital holdings or request physical delivery of the metal.

As India shapes its own regulatory model, policymakers are expected to closely examine successful digital gold ecosystems in other nations. Countries like Turkey, Indonesia, Malaysia, Australia, the UK, and China are being studied for their approaches to oversight.