Bullion Body IBJA Sets Up Self-Regulatory Division for Digital Gold Transparency

The India Bullion and Jewellers Association (IBJA) has initiated a self-regulatory division to enhance governance and transparency in the digital gold sector, as per news reports.  

This move follows SEBI's advisory highlighting the lack of investor protection in digital gold offerings. 

IBJA’s Self-Regulatory Framework Targets Market Integrity 

On December 2, 2025, IBJA formally announced the establishment of a Self-Regulatory Division (SRD) dedicated solely to the governance and oversight of digital gold.  

This initiative aims to bridge existing regulatory gaps by introducing a Self-Regulatory Framework (SRF) that mandates minimum purity standards, insurance provisions, and full physical backing for all digital gold offerings. 

As part of the framework, entities dealing in digital gold will be required to subject themselves to independent quarterly audits and strict compliance checks. These audits will validate the existence and quality of physical gold backing customer holdings.  

Consumer protection will also be enhanced through greater disclosure requirements and a defined grievance system. 

Consultation and Standardisation Process Underway 

IBJA’s first step will involve hosting a Digital Gold Industry Consultative Meeting (DGICM) involving digital gold providers, custodians and consumer advocates. A Consultation Paper (CP) will follow, outlining proposals on purity, segregation of gold, and clear communication to users on fees and risks. 

Entities registering with the SRD will need to adhere to the framework by April 1, 2026, with the final SRF being published by March 31, 2026. The four-month transition period will allow digital gold firms to upgrade their internal systems to meet the new standards. 

Read More: Dubai Introduces Official 14-Carat Gold Price as Consumers Shift to Budget Options! 

Transparency Portal and Enforcement Measures 

To foster public trust, IBJA will launch a Digital Gold Transparency Portal displaying anonymised audit summaries and compliance status of participating entities. The SRD will monitor violations and has authority to impose penalties, suspensions or fines for non-compliance with rules set out in the SRF. 

This self-governance model seeks to provide accountability while potentially delaying the need for immediate statutory intervention. 

Conclusion 

IBJA’s move to self-regulate the digital gold industry is intended to enhance trust, enforce standardisation, and ensure consumer clarity. With independent audits and increased disclosures, this initiative aims to secure and structure the fast-evolving digital gold market in India. 

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