Panel Seeks Tighter Crypto Monitoring Amid Regulatory Concerns
A parliamentary panel may recommend stricter monitoring of cryptocurrency transactions and wider consultations on the legal treatment of digital assets, according to sources.
The Parliamentary Standing Committee on Finance has been examining virtual digital assets (VDAs), which include cryptocurrencies like Bitcoin and non-fungible tokens (NFTs), for over a year. The committee has held more than half a dozen meetings on the subject and is preparing its report for submission to the Lok Sabha Speaker.
The government has previously warned that crypto assets are inherently borderless, requiring international collaboration to prevent regulatory arbitrage. It has maintained that legislation to regulate or ban VDAs can be effective only through international cooperation to assess their risks and benefits.
Last month, the finance ministry cautioned the public about the risks of unregulated crypto products and NFTs, stating that there may be no regulatory recourse for losses arising from such transactions. However, VDA service providers are subject to anti-money-laundering requirements under the Prevention of Money Laundering Act.
The director of the Financial Intelligence Unit-India recently issued non-compliance notices to 15 VDA service providers under the Act.