Parliamentary panel to urge stricter crypto monitoring framework

The Parliamentary Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, has concluded an extensive examination of Virtual Digital Assets (VDAs)—the legal terminology for cryptocurrencies and non-fungible tokens—after more than a year of deliberations spanning multiple sessions.

According to sources familiar with the committee's work, the panel is preparing to recommend that the government establish mechanisms for monitoring cryptocurrency transactions more effectively. The recommendations are also expected to include guidance on developing a comprehensive legal framework governing digital assets, coupled with calls for wider government consultations on the matter.

The committee is likely to suggest that the government deploy advanced technological solutions to enhance surveillance capabilities across all digital asset platforms. These recommendations aim to address gaps in the current regulatory landscape, where India has not yet formally recognised cryptocurrencies as an asset class or issued dedicated regulatory directives.

The committee's report is expected to be submitted to the Speaker of the Lok Sabha shortly, signalling a potential shift toward more structured oversight of the cryptocurrency sector in India. The findings could shape future policy decisions regarding digital asset management and investor protection in the country.