India’s parliamentary finance committee will scrutinise the future of virtual digital assets on 16 September, amid growing offshore trading activity and regulatory uncertainties, potentially shaping future legislation.
India’s parliamentary finance committee is set to press ahead with a fresh review of the country’s crypto rules on 16 September, when it will hear from the Department of Economic Affairs on the future of virtual digital assets, according to CryptoNews. The session, chaired by Bhartruhari Mahtab in New Delhi, comes after earlier consultations with the Reserve Bank of India and the Institute of Chartered Accountants of India, and follows a meeting that was previously listed for late August before being cancelled.
The hearing is part of a wider parliamentary study on virtual digital assets and the way forward. India’s current approach combines heavy taxation with anti-money-laundering controls, but stops short of a full market framework. Gains on transfers are taxed at 30%, while a 1% tax deducted at source applies to specified transactions. In addition, service providers must register with the Financial Intelligence Unit under anti-money-laundering rules. Even so, there is still no dedicated law covering exchange oversight, custody, asset classification, investor protection or dispute redress, leaving much of the sector in a grey area.
That gap has become more urgent as more Indian trading activity appears to be shifting offshore. Industry submissions cited by CryptoNews suggest a large share of domestic volume now takes place on foreign platforms, which could weaken the effect of India’s tax regime and make enforcement harder. The policy debate is also split at the institutional level: the RBI has remained wary of legalisation, while the ICAI has argued for clearer legal and accounting standards. The committee’s next hearing will not change the rules immediately, but it could shape the recommendations that guide any future legislative or regulatory move.
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