In a recent report by ET, WGC emphasized the need for robust checks and balances to safeguard customers' digital gold investments. The council highlighted the importance of introducing transparent mechanisms for purchasing and holding digital gold, aiming to ensure the security of transactions.

Sachin Jain, CEO of WGC India, has been approached by Inc42 for comments on these developments, with updates pending based on his response.

According to WGC, over 120 million customers have engaged in digital gold transactions, with approximately 40 million currently holding digital gold. The council's push for regulatory oversight comes amidst concerns over market integrity and consumer protection in the digital gold sector.

Earlier data from the World Gold Council revealed a decline in gold consumption in India, attributed partly to price fluctuations. In 2023, the country's gold consumption dropped to 562.2 tonnes from 600.6 tonnes in 2022, primarily driven by fluctuating prices.

Jain underscored the importance of fostering a secure and orderly growth of the digital gold market to facilitate micro savings and deter fraudulent activities. He stressed the necessity for regulatory guidelines aligned with broader economic agendas promoting digital asset adoption.

Notably, Bengaluru-based fintech firm Plus Gold is among the few offering digital gold purchase options in India. Additionally, a recent 2024 survey highlighted that 14% of Indian women prefer gold as an investment choice over real estate and equities.

All digital and physical gold assets are insured and securely stored by Augmont, a digital gold provider and the technology arm of RiddiSiddhi Bullions (RSBL), ensuring comprehensive security measures across the board.