TLDR
- India’s finance panel will meet the RBI on crypto regulation on July 2.
- The meeting will focus on virtual digital assets and India’s policy path.
- ICAI will also brief lawmakers on crypto accounting and tax issues.
- The RBI has maintained a cautious stance on cryptocurrency regulation.
- India’s ED recently probed alleged ₹2,500 crore cross-border crypto transfers.
India’s Parliamentary Standing Committee on Finance is scheduled to meet representatives of the Reserve Bank of India on July 2 as lawmakers continue consultations on the country’s approach to cryptocurrency regulation.
The meeting will focus on “A Study on Virtual Digital Assets and Way Forward,” according to the official schedule cited in reports. The panel, chaired by BJP member of parliament Bhartruhari Mahtab, has also called representatives from the Institute of Chartered Accountants of India for the same day.
The RBI is expected to appear before the committee from 11:00 a.m. to 12:30 p.m., while ICAI is scheduled from 12:30 p.m. to 1:30 p.m. at Parliament House Annexe in New Delhi. The session will be the committee’s eighth stakeholder consultation on crypto regulation.
RBI to Present Views Before Finance Panel
The July 2 meeting marks the first time the RBI will directly present its position before the committee during the current round of consultations. The central bank has maintained a cautious approach toward cryptocurrencies and has repeatedly warned about risks tied to financial stability, monetary policy, and consumer protection.
Committee chair Mahtab previously said the RBI remains opposed to allowing or formally regulating cryptocurrency activities in India. The central bank’s testimony may therefore carry weight as lawmakers review whether India should create a dedicated framework for virtual digital assets.
In earlier meetings, the panel heard from domestic and global crypto exchanges operating in India, including Binance, Coinbase, CoinDCX, CoinSwitch, and WazirX. Government bodies and regulators such as the Financial Intelligence Unit, Central Board of Direct Taxes, International Financial Services Centres Authority, and Ministry of Corporate Affairs have also participated.
The committee’s ongoing consultations come as India continues to regulate crypto mainly through taxation, anti-money laundering registration, and enforcement actions rather than a single comprehensive market law.
Enforcement Cases Add Focus to Crypto Rules
The meeting comes after the Enforcement Directorate investigated alleged unauthorized cross-border crypto transfers worth more than ₹2,500 crore. In June, the agency conducted searches involving crypto payment and remittance firms, including Transak, Onramp.money, and Onmeta.
Authorities alleged violations under the Foreign Exchange Management Act and froze nearly ₹6 crore in bank accounts linked to the investigation. The case brought attention to areas involving cross-border crypto transfers, stablecoin use, foreign exchange compliance, and remittance services.
These issues fall partly within the RBI’s regulatory focus because they involve payments, capital movement, and foreign exchange rules. Lawmakers are expected to examine whether existing laws are sufficient to manage such activity or whether a new framework is required.
India has also required crypto platforms to register with the Financial Intelligence Unit under anti-money laundering rules. Several offshore exchanges have faced action in recent years for operating without meeting local compliance requirements.
ICAI to Address Tax and Accounting Issues
The ICAI’s participation is expected to focus on accounting standards, audit treatment, disclosure rules, and taxation issues linked to digital assets. These areas remain important for companies, investors, exchanges, and tax authorities as crypto activity continues in India.
Tax authorities previously told the parliamentary panel they had identified nearly ₹888.82 crore in undisclosed crypto-related income and issued notices to more than 44,000 taxpayers. India currently taxes crypto gains at 30% and applies a 1% tax deducted at source on certain virtual digital asset transfers.
Reports have said India is considering a multi-regulator model for crypto oversight. Under such an approach, SEBI could supervise exchanges and token offerings, the RBI could oversee payment and cross-border risks, and the Finance Ministry could handle taxation and broader policy matters.
No final regulatory framework has been approved. The July 2 hearing may help lawmakers assess how responsibilities should be divided among regulators and how India should treat crypto trading, custody, stablecoins, and cross-border transactions.
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