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Parliamentary Panel Discusses Crypto Regulation, Fraud Tracking by CBDT

A Parliamentary Standing Committee on Finance held a meeting to study Virtual Digital Assets, where the CBDT informed members it is tracking money transferred fraudulently through crypto and assets parked abroad. The CBDT has identified over ₹888 crore in undisclosed income from such assets and sent communications regarding it. Panel chairperson Bhratruhari Mahtab noted that while different countries handle crypto differently, from bans to regulation, it would be better for India to regulate it. An opposition member pointed out confusion in the government, as the RBI does not recognize crypto but trading is still taxed.

Key Points: Panel on Finance Discusses Crypto Regulation, CBDT Tracks Fraud

  • CBDT tracking fraudulent crypto transfers
  • Undisclosed income of ₹888+ crore identified
  • Panel debates regulation vs. containment
  • RBI does not recognize crypto
  • Trading is taxed despite regulatory uncertainty
2 min read

Parliamentary panel on Finance discusses situation concerning crypto cuurency, CBDT says fraudulent transactions being tracked

Parliamentary committee hears from CBDT on tracking fraudulent crypto transactions and undisclosed income, debates regulatory approach for India.

"One big thing that CBDT said was that money which is being transferred in a fraudulent way, that is also being tracked. - Bhratruhari Mahtab"

New Delhi, January 8

Parliamentary Standing Committee on Finance on Wednesday heard views of officials of Financial Intelligence Unit - India and CBDT on Virtual Digital Assets with chairperson of the panel Bhratruhari Mahtab stating that discussions were held on situation concerning crypto currency and the system of regulation.

Mahtab said CBDT informed the committee that money transferred in a fraudulent way is being tracked as also assets and income being changed through crypto and parked abroad.

The agenda of the meeting was 'Study on Virtual Digital Assets (VDAs) and way forward'. Mahtab said the panel will discuss the issue in detail.

"One big thing that CBDT said was that money which is being transferred in a fraudulent way, that is also being tracked. And in foreign countries also where there is attempt to change form of income or asset that has also come to notice," Mahtab told ANI.

Reports said that CBDT has identified undisclosed income over Rs 888 crore from virtual digital assets and communications have been sent in this regard.

Mahtab told ANI that different countries are dealing with crypto in different manner - from banning to regulation to containing it.

He said it would be better for India to regulate it.

"What is the system of regulation, what is the situation now? RBI does not recognize it. The deliberations are at formative stage. It was our third meeting and we will have more meetings in the future," he said. The meeting lasted almost three hours.

A member of the panel, who belongs to an opposition party, later said that there is confusion in government over crypto currency. He said while RBI does not recognise it, trading is taxed.

- ANI

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Reader Comments

R
Rohit P
₹888 crore undisclosed income from crypto? That's huge! This is why we need clarity. The government taxing it but RBI not recognizing it creates so much confusion for young investors like me.
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Aditya G
Good step by CBDT. Parking black money abroad via crypto is a real threat to our economy. Regulation is the way forward, not a blanket ban. Let's innovate but with rules.
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Sarah B
As someone working in fintech, I appreciate the detailed study. India has a chance to lead in digital assets if the policy is clear and forward-looking. Hope they consult actual tech experts too.
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Karthik V
The opposition member has a point. Taxing something you don't officially recognize is contradictory. Common public needs a simple framework. Is it legal or not? Bhai, ek clear stand lo.
M
Meera T
Tracking is good, but prevention is better. Need strong KYC norms on Indian exchanges and education for users. Many aunties-uncles are investing without understanding the risks.

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