India's crypto regulation enters a critical phase, with the Finance Ministry set to hold a hearing on virtual digital assets on September 16

According to Odaily, the Indian Parliament's Standing Committee on Finance has confirmed that the Department of Economic Affairs will testify on virtual digital assets on September 16. Currently, cryptocurrency is not legal tender in India, but it is not prohibited either. Investment returns are taxed at a flat rate of 30%, with a 1% tax deducted at source. As of mid-2026, 54 virtual digital asset service providers have registered with the Financial Intelligence Unit, including CoinDCX, CoinSwitch, Binance, and Coinbase. However, approximately 91.5% of India's crypto trading volume flows to offshore platforms. The committee has previously heard opposing views from the Reserve Bank of India and the Institute of Chartered Accountants of India, with the RBI opposing legalization while the ICAI supports the establishment of a comprehensive legal framework.