India's Parliamentary Panel Eyes Stricter Cryptocurrency Regulations

The Indian government is considering stricter regulations on cryptocurrency transactions as a parliamentary panel reviews digital asset rules. The committee, chaired by Bhartruhari Mahtab, has spent over a year examining cryptocurrencies and non-fungible tokens (NFTs).

One of the proposals being considered is a stronger system for monitoring cryptocurrency transactions, which could involve deploying newer technological tools to track the movement of digital assets across wallets, exchanges, and other platforms.

Cryptocurrency transfers can move quickly across multiple wallets and platforms, making traditional financial monitoring more difficult. Unlike bank transfers, crypto transactions often involve wallet addresses rather than conventional account numbers and can move across jurisdictions without relying on a single financial institution.

India already requires crypto platforms to follow anti-money laundering (AML) rules under the Prevention of Money Laundering Act framework. However, taxation does not amount to legal recognition or full regulation of cryptocurrencies as a financial asset class.