India Parliamentary Panel Recommends Crypto Monitoring and Regulation

A parliamentary panel in India is preparing a report on Virtual Digital Assets (VDAs), which includes cryptocurrencies and non-fungible tokens (NFTs). The panel, headed by BJP MP Bhartruhari Mahtab, has been examining various aspects of VDAs for over a year and has held more than half a dozen meetings. The report is expected to recommend action for monitoring cryptocurrency transactions and wider consultations on what to do legally with digital assets.

The panel is also likely to suggest that the government bring in the latest technology for stricter monitoring of all digital assets. India does not currently recognize crypto as an asset and has issued no direction to regulate them in the country. The government has previously stated that any legislation for regulating or banning virtual digital assets can only work with international collaboration.

Last month, the Ministry of Finance announced that crypto products and NFTs are unregulated and can be highly risky. The Director, Financial Intelligence Unit-India (FIU-IND), has also issued notices for non-compliance to 15 Virtual Digital Assets Service Providers (VDA SPs) under the Prevention of Money Laundering Act, 2002.