Parliament Standing Committee on Finance to review Virtual Digital Assets; RBI, ICAI to take part
New Delhi, July 2
The Standing Committee on Finance will hold its next sitting on Thursday 2 to study the regulatory roadmap for Virtual Digital Assets, according to a notice issued by the Lok Sabha Secretariat on 25 June 2026. The meeting will be held in the Parliament House Annexe, New Delhi.
The sitting is dedicated entirely to the subject 'A Study on Virtual Digital Assets (VDAs) and Way Forward' and has been split into three sessions.
From 1100 hrs to 1230 hrs, the Committee will record oral evidence of the representatives of the Reserve Bank of India (RBI). RBI officials are expected to present the central bank's assessment of VDAs, covering financial stability risks, impact on monetary policy, concerns around money laundering, investor protection, and the need for a regulatory framework. The RBI has previously cautioned against private cryptocurrencies while supporting a central bank digital currency.
The second session, from 1230 hrs to 1330 hrs, will involve a discussion with representatives of the Institute of Chartered Accountants of India (ICAI). The ICAI is likely to share inputs on taxation of VDAs, accounting standards for crypto holdings, audit challenges, and disclosure norms for companies and individuals dealing in digital assets. The Institute has been working on guidance notes for VDA transactions since the introduction of the 30% tax and 1% TDS in 2022.
After lunch, the Committee will reconvene at 1400 hrs onwards for internal deliberations. During this closed-door session, Members will discuss the depositions made by RBI and ICAI and examine possible recommendations on the way forward for India's VDA ecosystem.
The notice, issued by Bharti Sanjeev Tuteja, Director, states that agenda papers will be circulated to Members through the Member's Portal and e-mail later. Members have been requested to make it convenient to attend the sitting.
The Standing Committee on Finance examines legislation and policies related to the Ministry of Finance, RBI, SEBI, banks, insurance, and taxation. Unlike the Public Accounts Committee which audits past expenditure, this Committee looks at current policy issues and future frameworks.
India currently taxes VDAs at 30% on gains with 1% TDS on transfers, but lacks a comprehensive law governing trading, exchanges, or investor safeguards. The July 2 sitting signals Parliament's intent to take expert inputs before shaping a potential regulatory or legislative response on crypto assets.
— ANI
Reader Comments
As an expat living in Bangalore, I find India's crypto tax regime quite aggressive compared to other countries. But I'm glad to see the ICAI being consulted on accounting standards. The 1% TDS creates huge compliance headache for frequent traders. Hopefully, the committee revisits that aspect too.
RBI has always been paranoid about crypto, but their CBDC experiment (e-Rupee) hasn't exactly set the world on fire. Meanwhile, peer-to-peer crypto trading continues unabated. A clear regulatory framework with KYC norms, investor protection, and fair taxation would actually help curb illegal activities better than this current limbo. Good move by the committee! 👍
I've been holding some crypto since 2021, and the uncertainty is nerve-wracking. Why can't India follow something like Japan's approach - register exchanges, mandate disclosures, and tax fairly? Instead, we have 30% tax with no offset for losses, no holding period benefits, and no clear legal status. These parliamentary sessions are welcome, but we need concrete action, not more meetings.
Interesting to see ICAI involved - their guidance on accounting for crypto holdings is crucial for companies. But let's be honest, India's crypto policy has been inconsistent: first a circular banning bank dealings with exchanges (later struck down), then sudden 30% tax, and now this study. The committee needs to address the fundamental question: are VDAs legal or not? Everything else flows from that.
From a financial stability perspective, RBI's caution is understandable. But trying to ban crypto is like trying to ban the internet -
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.