India's Crypto Regulation Takes Center Stage as Finance Ministry Faces Parliamentary Panel
India's crypto market is set for a significant development on September 16 as the Finance Ministry appears before a parliamentary panel to discuss virtual digital assets (VDAs). The meeting, which was initially scheduled for August 27 but was cancelled and rescheduled, will focus on expanding India's approach to crypto beyond taxation and anti-money laundering rules.
The government has been struggling to provide clarity on who regulates VDAs and what defines digital assets. This lack of clear regulations has led to a significant portion of Indian crypto trading happening offshore, with about 91.5% of the country's crypto trading volume in FY2024-25 taking place on foreign platforms.
The RBI continues to take a cautious stance on VDAs, citing concerns over their volatility and inherent risks. The bank has previously argued for banning cryptocurrencies, but its current position will be crucial as the government looks to regulate the industry.