The State of Maharashtra, India, is moving forward with an amendment to the Depositor Protection Act to include encrypted currency and virtual digital assets. The local government also plans to establish specialized financial monitoring units in each district to identify fraudulent investment plans and assist in protecting the rights and interests of victims.
Monitoring modules will be established in the regions
This arrangement was announced by Yogesh Kadam, Minister of State for Home Affairs of the State, during the discussion of the Maharashtra Depository Interests Protection Act (Amendment of 2026). According to them, special monitoring mechanisms at the local level will be used to detect suspicious fund-raising and investment frauds earlier.
The Government hopes to improve the efficiency of the identification and disposal of cases of financial fraud and to reduce the loss to victims through such monitoring modules.
Encrypted assets included in the law
One of the priorities of the amendment was the inclusion of encrypted currency and virtual digital assets in the coverage of the law. This means that where assets are used for fraudulent investment activities, enforcement and recovery procedures will have a clearer legal basis.
Reports indicate that this adjustment has also been used to help recover victims ' losses. For the ever-expanding online investment scams in recent years, encrypted assets have been formally incorporated into local protection laws, indicating that regulators are trying to fill gaps in the law enforcement agenda.
The law will also tighten the rules of appeal.
According to the disclosures, the amendment also included tightening the rules of appeal and hoped to facilitate the expeditious completion of cases. The overall direction is to reduce the disposal cycle for fraud cases while enhancing the protection of depositors and investors.
The bill still needs to complete the legislative process. Following its adoption, Maharashtra State is expected to be more operational in terms of investigation, recovery and judicial treatment of encryption-related investment fraud.