Highlights
- Parliament's Standing Committee on Finance heard from the RBI and ICAI on Virtual Digital Assets on July 2, 2026.
- It was the first time the RBI directly presented its views on crypto assets to this parliamentary panel.
- Committee chairperson Bhartruhari Mahtab said the RBI was against legalising VDAs in India, while the ICAI supported a comprehensive VDA law.
- The existing 30% tax on VDA gains, 1% TDS, and stricter exchange reporting rules remain unchanged for now.
India's approach to regulating virtual digital assets moved into sharper focus after Parliament's Standing Committee on Finance held a hearing on July 2, 2026, with the Reserve Bank of India and the Institute of Chartered Accountants of India presenting contrasting perspectives on the way forward for crypto regulation. The session marked the first occasion on which the RBI directly presented its views on virtual digital assets to this parliamentary panel.
The committee, chaired by BJP MP Bhartruhari Mahtab, described the hearing as a study and consultation exercise rather than the introduction of any new law or ban, though the positions expressed by the two institutions revealed a continuing divide within India's policy establishment over how to treat crypto assets.
Why Investors Are Watching
Participants in India's crypto ecosystem, including exchanges, traders, and blockchain-linked businesses, are watching this development closely because regulatory clarity, or the lack of it, directly affects business planning and compliance costs. Following the hearing, committee head Bhartruhari Mahtab stated that the RBI remained opposed to legalising virtual digital assets in India, reflecting the central bank's long-standing caution around crypto-related risks.
In contrast, the Institute of Chartered Accountants of India took a different position, supporting a comprehensive VDA law and offering guidance aimed at improving reporting and compliance clarity for market participants, highlighting a lack of consensus among key institutional voices.
Market Context
The July 2 hearing forms part of a broader ongoing dialogue in India around crypto regulation, with the finance ministry reportedly in discussions with SEBI and the RBI ahead of the Union Budget 2026-27 to establish a clearer regulatory framework. SEBI has been positioned as a possible primary supervisor for crypto exchanges, while the RBI may retain oversight of issues linked to foreign investment and cross-border capital flows.
For now, the existing tax regime remains firmly in place: a 30% tax applies to gains from the transfer of virtual digital assets, along with a 1% tax deduction at source on transactions. From April 1, 2026, crypto exchanges and platforms also face specific penalties for non-reporting of transactions, including a daily penalty for non-filing and a separate penalty for furnishing incorrect information.
What Market Participants Will Monitor
Crypto exchanges and industry participants will watch for any follow-up actions from the Standing Committee on Finance, including whether its findings translate into draft legislation or continued reliance on the existing tax-and-reporting framework administered through the Income Tax Act and FIU-IND registration requirements.
The evolving multi-regulator approach involving SEBI, the RBI, and the finance ministry will also be tracked, particularly SEBI's proposal to classify virtual digital assets by their economic characteristics rather than their underlying technology, which could result in different assets being regulated by different authorities.
Industry or Peer Perspective
India's major crypto exchanges, including CoinDCX and WazirX, along with newer entrants such as CoinSwitch, operate within this uncertain but gradually evolving regulatory environment. These platforms have increasingly emphasised compliance credentials, such as FIU-IND registration and proof-of-reserves publication, partly in response to the cautious regulatory stance reflected in the RBI's comments to the parliamentary panel.
The divide between the RBI's caution and the ICAI's support for a structured VDA law mirrors similar debates in other jurisdictions grappling with how to balance innovation, investor protection, and monetary policy considerations around crypto assets.
Conclusion
The July 2, 2026 parliamentary hearing underscored the continuing lack of consensus within India's policy institutions over how virtual digital assets should ultimately be regulated, even as the existing tax and compliance framework remains unchanged. With the RBI maintaining its cautious stance and the ICAI advocating a clearer legislative framework, market participants will need to watch for further developments as the debate continues ahead of the Union Budget 2026-27.
FAQs
Q: Why is the company in focus today?
A: This article covers the RBI's and ICAI's presentations to Parliament's Standing Committee on Finance on July 2, 2026 regarding the regulatory treatment of virtual digital assets in India.
Q: What factors are investors monitoring?
A: Crypto market participants are monitoring whether the parliamentary committee's findings lead to draft legislation, and how the evolving multi-regulator approach involving SEBI and the RBI develops ahead of the Union Budget 2026-27.
Q: Which peer companies are relevant?
A: Indian crypto exchanges such as CoinDCX, WazirX, and CoinSwitch are relevant given their direct exposure to any regulatory changes emerging from this parliamentary review process.
Q: Is this article investment advice?
A: No. This article is intended solely for informational purposes and should not be considered investment, financial or trading advice.