An Indian lawmaker calls for the introduction of a dedicated tokenization bill

According to Finance Feeds, to promote the modernization of India's financial framework, Aam Aadmi Party (AAP) member Raghav Chadha has officially proposed a dedicated "Tokenization Bill." During his speech in the Indian Rajya Sabha, Chadha pointed out the necessity of establishing a tailored legal framework to leverage blockchain technology for real-world assets (RWAs). His proposal marks a significant shift in Indian politics, moving from merely taxing "speculative" cryptocurrency trading 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 technology innovations of the 21st century." He urged the government to establish a regulatory sandbox that allows fintech companies to experiment with tokenized products in a controlled environment supervised by Indian regulatory authorities. The bill aims to eliminate the ambiguity currently plaguing India's digital asset market by clearly defining "tokenized assets" legally. Chadha warned that without domestic legislation, India risks losing sovereign data and economic power, with its assets potentially subjected to unregulated trading on foreign networks.