India’s push toward a cryptocurrency framework has suffered another setback after a parliamentary hearing with the Department of Economic Affairs (DEA) scheduled for August 27 was canceled. No replacement date has been announced, extending uncertainty for investors, exchanges and VDA businesses.
Parliament’s Crypto Discussion Faces Another Delay
The canceled hearing was expected to examine India’s approach to virtual digital assets beyond the existing tax and anti-money laundering framework. The DEA plays a central role in financial policy, making its participation important for understanding crypto regulation.
The committee’s next sitting on September 3 will not cover cryptocurrency. According to the official notice, that meeting will instead focus on ‘Direct Tax Reforms: Simplification, Rationalisation and Ease of Compliance’ with representatives from the Department of Revenue and the Central Board of Direct Taxes (CBDT).
Tax Rules Remain Clearer Than Regulation
India already applies a 30% tax on gains from virtual digital assets (VDAs) and a 1% tax deducted at source on transfers. Crypto businesses must also comply with anti-money laundering requirements.
However, India lacks a comprehensive framework defining how crypto assets, exchanges and service providers should be regulated. The canceled hearing does not change existing rules for buying, selling or holding VDAs, but it delays clarity on the industry’s future structure.
Parliament has Proposed an Interim Approach
A parliamentary panel has previously recommended creating an interim self-regulatory organization for the crypto sector until wider legislation is introduced. The proposed body could operate under an existing regulator such as the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI).
The proposal focuses on investor protection and stronger standards, but remains a recommendation rather than an enforceable regulation.
RBI and Finance Ministry Differences Remain Important
Policy differences continue to complicate progress. The RBI has maintained a cautious position because of financial stability concerns, while the Finance Ministry and Parliament have shown greater interest in regulation rather than restriction.
For investors, the cancellation means crypto tax obligations remain in place while questions around classification, oversight and platform regulation stay unresolved.
Also Read: India Crypto Shift: 30% Tax Pushes HNIs Toward Long-Term Bets
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
