The Indian digital gold sector is on the verge of formal regulation as the government shows interest in establishing an oversight framework. In a recent meeting with fintech startup founders, officials from the Ministry of Finance acknowledged the sector's rapid growth, with investments reaching ₹3,000 crore (approximately $360 million USD) monthly. Currently, the sector operates without regulation, prompting calls for a legal framework to govern it. Gaurav Mathur, managing director of Safegold, emphasized the need for clarity in regulation, while Shweta Rajpal Kohli from the Startup Policy Forum noted the misunderstandings among policymakers regarding digital gold. Discussions are ongoing about whether the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI) will take charge of regulation. In response to these challenges, industry leaders are working to form the Digital Precious Metal Council of India, aiming to introduce industry standards and fair practices. The sector currently manages assets worth between ₹15,000 crore to ₹20,000 crore, backed by approximately 15 tonnes of physical gold in vaults. As the sector matures, the need for regulatory oversight has become increasingly clear, marking a significant shift in perception among government officials.