A parliamentary panel may recommend to the government action for monitoring of cryptocurrency transactions and wider consultations on what to do legally with all such digital assets, according to a source aware of the matter. The Parliamentary Standing Committee on Finance, headed by BJP MP Bhartruhari Mahtab, has examined various aspects of Virtual Digital Assets (VDAs), a legal term for cryptocurrencies and non-fungible tokens (NFTs), for over a year and held more than half a dozen meetings. The panel is currently preparing its report for submission to the Speaker of the Lok Sabha. As per The Hindu BusinessLine, there is a possibility that the committee may recommend to the government action for monitoring of cryptocurrency transactions and wider consultations on what to do legally with all such 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's cryptocurrency adoption has shown significant growth, with 39.3 million KYC-verified accounts registered with Virtual Asset Service Providers (VASPs) by May 2026, according to data unveiled by India's FIU. The accounts held approximately ₹20,436 crore worth of cryptocurrencies at that time, representing an average holding of around ₹5,200 per verified account. This compares to around 36 million KYC-verified accounts registered by the end of April 2025, which held around ₹34,000 worth of cryptocurrencies. Since September 8, 2026, the financial committee, led by BJP lawmaker Bhartruhari Mahtab, has held eight crypto meetings in total to examine these developments and their implications for regulatory oversight.
India does not recognise crypto as an asset and has issued no direction to regulate them in the country. In the past, the government informed Parliament that crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. The government also said that any legislation for regulating or banning virtual digital assets can work only with international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.
The committee believes that better blockchain-tracking tools could help authorities follow transactions across networks and verify where funds move, as reported by The Hindu BusinessLine. While the FIU can already track crypto activity, the committee states that the country needs more advanced tools to connect transaction records across multiple chains. The ongoing discussions will help authorities better understand the usage of cryptocurrencies in the country, with the move potentially giving more ideas on crypto transactions involving domestic and offshore platforms. Stronger monitoring could give regulators more tools to identify suspicious activity and improve oversight of the market.
