Tokenisation & Digital Assets
Tokenisation & Digital Assets
Tokenisation & Digital Assets
Where tokenisation actually stands in GIFT IFSC today: the sandbox route, the issuer vehicle behind the token, and an honest read of what is permitted now.
Scope of work
GIFT IFSC is at the consultation and sandbox stage for tokenisation. We will tell you what is permitted today, not what may be permitted later.
Where the regulation stands
- IFSCA consultation paper of February 2025; no final framework notified yet
- Distinct from cryptocurrencies, crypto assets, CBDCs and NFTs, which IFSCA does not permit
- The live route is the IFSCA FinTech Sandbox Framework of 16 March 2026
- Until a framework is notified, a tokenised fund or bond is regulated as the underlying product
Getting authorised
- Perimeter assessment - regulated security, fund unit or financial product
- Sandbox track selection, application drafting and IFSCA liaison
- Structuring the GIFT IFSC issuer or fund vehicle behind the token
- TechFin and Ancillary Services registration for platform providers
Tax & controls
- Tax characterisation against the virtual digital asset definition in s.2(111)
- Consequences under s.194 and s.393(1), formerly s.115BBH and s.194S
- Custody, AML/CFT, KYC and DPDP Act, 2023 framework design
- Governance, smart contract risk and settlement finality documentation
Four sandbox tracks are available: regulatory, innovation, inter-operable, and overseas referral via the FinTech Bridge.
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