Parliamentary panel may push for stricter crypto transaction monitoring
A parliamentary panel may recommend tighter monitoring of cryptocurrency transactions and wider consultations on the legal treatment of digital assets in India, according to sources familiar with 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 covering cryptocurrencies and non-fungible tokens (NFTs)—over more than a year, holding more than half a dozen meetings on the issue. The committee is now preparing its report for submission to the Lok Sabha Speaker.
Among the recommendations being considered are measures for monitoring cryptocurrency transactions and wider consultations on how digital assets should be dealt with legally. The panel may also recommend that the government deploy newer technology to strengthen monitoring of digital assets. These deliberations come as India does not currently recognise cryptocurrency as an asset and has not put in place a comprehensive regulatory framework governing such digital assets. The government has previously told Parliament that crypto assets are inherently borderless and that any legislation seeking to regulate or ban virtual digital assets can be effective only with international collaboration.
Authorities have stepped up scrutiny of cryptocurrency service providers. The Financial Intelligence Unit-India recently issued non-compliance notices to 15 Virtual Digital Asset Service Providers under the Prevention of Money Laundering Act, 2002. The Finance Ministry has cautioned the public that cryptocurrency products and NFTs remain unregulated and can carry significant risks.
