India Government Response Expected Next Week as Crypto Regulation Debate Intensifies
The Indian government is set to respond to the Standing Committee on Finance's study on virtual digital assets (VDAs), marking an important juncture in the country's crypto regulation debate. The committee has been deliberating on VDAs since September 2025, holding discussions with stakeholders from various sectors.
According to Bhartruhari Mahtab, chairman of the Standing Committee on Finance, the government will provide its response next week, after which the committee will prepare and submit its report. The report is expected to shed light on India's crypto regulatory policy and help legislators understand how virtual assets can fit into the country's financial ecosystem.
The lack of a specific regulatory structure for VDAs has raised concerns about potential abuse and other risks. Mahtab emphasized that the government does not recognize virtual digital assets as an acceptable type of currency or financial asset, but also acknowledged the need for regulation in this sector.