India's Crypto Framework Delayed as Parliamentary Committee Cancels Crucial Hearing

The Indian government's efforts to finalize its crypto framework have hit another roadblock. A parliamentary committee has cancelled a scheduled hearing with the Department of Economic Affairs (DEA) on August 27, 2026, which was expected to provide crucial evidence for the panel's study on virtual digital assets (VDAs).

The cancellation means that the wait for India's crypto framework finalization will extend beyond 2026, leaving investors with ongoing regulatory uncertainty. The DEA's discussion paper on crypto regulation has reportedly been shelved at least five times since it was said to be in its 'final drafting stages' in May 2025 due to the RBI's opposition.

The panel's study is focused on establishing clear legal definitions for different categories of digital assets, but without the DEA's evidence, this goal remains elusive. The cancellation has also shifted the focus towards compliance enforcement rather than establishing a clear framework.