SEBI Relaxes PAIA Certification: What It Means for Crypto Accounting Software Users
The Securities and Exchange Board of India (SEBI) has issued a circular on June 19, 2026, relaxing certification requirements for Persons Associated with Investment Advice (PAIA) in non-core services. This move, part of the 'Ease of Doing Business' initiative, directly impacts firms offering crypto advisory and related services. For accounting professionals and crypto firms, understanding this change is crucial because it reduces regulatory burden while maintaining compliance standards. Leveraging crypto accounting software can help firms navigate these relaxed rules efficiently, ensuring accurate reporting and audit readiness.
Understanding SEBI's PAIA Certification Relaxation
SEBI's circular eases the requirement for PAIA certification for individuals involved in sales, marketing, and other non-core investment advisory services. Previously, all persons associated with investment advice needed certification. Now, those in non-core roles are exempt, provided they do not directly advise clients. This relaxation aims to reduce compliance costs and streamline operations for advisory firms, including those dealing with digital assets. For crypto-focused firms, this means that staff handling client onboarding or administrative tasks may no longer need certification, freeing resources for core advisory roles.
Impact on Crypto Advisory Firms in India
Indian crypto advisory firms must still ensure that core advisors meet PAIA certification standards. However, the relaxation allows firms to allocate talent more flexibly. For example, a crypto accountant using crypto bookkeeping software can now focus on accurate transaction recording without certification concerns. This shift emphasizes the importance of robust technology to maintain compliance. Digital asset accounting software becomes even more critical as firms scale, ensuring that all client transactions are properly categorized and reported, even when non-certified staff handle data entry.
Why Crypto Accounting Software Is Essential Post-Relaxation
With reduced certification requirements, firms may onboard more non-certified personnel. This increases the risk of errors in crypto transaction recording. Best crypto accounting software automates data import from exchanges and wallets, applies correct cost basis methods, and generates tax reports. For Indian firms, this is particularly important given the complex tax treatment of virtual digital assets (VDAs). A crypto accountant can rely on software to ensure accuracy, while non-certified staff can handle data entry without compromising compliance. Enterprise crypto accounting software offers multi-user access, role-based permissions, and audit trails, making it ideal for growing advisory firms.
Key Benefits of Using Crypto Sub-Ledger Technology
A crypto sub-ledger integrates with existing accounting systems like ERP or general ledger, providing a single source of truth for all crypto transactions. This technology supports fair value accounting under Ind AS and IFRS, automatically adjusting for price changes. For Indian firms, a sub-ledger simplifies reconciliation of crypto holdings across multiple exchanges and wallets. It also generates detailed reports for SEBI or income tax audits. By adopting a sub-ledger, firms can maintain high compliance standards even as certification requirements are relaxed.
How Firms Can Adapt to the New Norms
To fully benefit from SEBI's relaxation, firms should update their internal processes. First, identify which roles are truly non-core and exempt from certification. Second, implement crypto accounting software to automate compliance tasks. Third, train non-certified staff on using the software to ensure data integrity. Finally, conduct periodic audits using the software's reporting features. This approach minimizes regulatory risk while maximizing operational efficiency.
Illustrative Scenario
To illustrate how this applies in practice, consider the following scenario: Priya, a compliance officer at a mid-sized Indian crypto advisory firm in Mumbai, learns about the SEBI relaxation. Her firm has 10 advisors and 5 support staff. Previously, all 15 needed PAIA certification. Now, only the advisors require it. Priya implements enterprise crypto accounting software from CryptaCount, allowing support staff to enter transaction data without certification. The software automates cost basis calculations and generates audit-ready reports. As a result, the firm reduces certification costs by 30% and improves data accuracy, passing a subsequent SEBI inspection without issues.
Source: SEBI India