India's finance panel ends crypto study, awaits govt reply
After a year of hearings, Parliament's finance panel has finished questioning the DEA on VDAs. Chair Mahtab says not regulating leaves scope for 'indulgences'.
A parliamentary review of crypto in India has reached its final stretch. The Standing Committee on Finance has wrapped up its hearings on virtual digital assets (VDAs), the legal term India uses for crypto, and now needs only a formal reply from the government before it files its report.
The last witness was the Finance Ministry's Department of Economic Affairs (DEA), which gave oral evidence to MPs on 16 September.
Twelve months of evidence
Work on the study, formally titled "A Study on Virtual Digital Assets (VDAs) and Way Forward", started in September 2025. Bhartruhari Mahtab, who chairs the committee, said members spent the year taking evidence from the RBI, the Central Board of Direct Taxes (CBDT) and a number of registered industry players.
Getting the DEA in front of the panel took two attempts. A sitting planned for late August was called off, and the session was moved to 16 September instead.
"Greater scope for indulgences"
Mahtab was blunt about the risk of leaving crypto in a regulatory vacuum. "Not regulating it also leaves greater scope for different types of indulgences," he said. He also highlighted grey areas that, in his view, have to be dealt with. MPs expect the government's reply next week, and the report can be finalised once it arrives.
How crypto is treated in India right now
- Tax: any gain on a VDA attracts a flat 30% tax, with no option to set off losses.
- TDS: 1% is deducted at source on specified crypto transfers.
- Compliance: exchanges must be registered with the Financial Intelligence Unit-India and meet anti-money-laundering obligations such as KYC.
- Oversight: there is no comprehensive framework yet and no single regulator. The RBI, SEBI and the Finance Ministry all have an interest.
Why Indian investors should follow this
No parliamentary document has set out a "way forward" on VDAs since the tax rules took effect in 2022, so this report will be the first. It may take a view on questions that matter directly to anyone trading crypto in India: should there be a dedicated regulator, should the 30% tax and 1% TDS be changed, and should exchanges need a licence to operate?
Recommendations from a standing committee are not law, but they often shape what the government does next. We will report on the findings as soon as the document is tabled.
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