India’s long-running debate over cryptocurrency regulation has hit another procedural delay. The Parliamentary Standing Committee on Finance has cancelled its August 27, 2026 sitting with the Ministry of Finance’s Department of Economic Affairs (DEA), where lawmakers were expected to continue examining the country’s approach toward Virtual Digital Assets (VDAs).

A notice issued by the Lok Sabha Secretariat on August 20 states that the committee meeting scheduled for Thursday, August 27 at 11:00 AM to take oral evidence from DEA representatives on “A Study on Virtual Digital Assets (VDAs) and Way Forward” stands cancelled.

August 27 Crypto Hearing Cancelled

The cancelled meeting would have brought the Department of Economic Affairs, one of the most important government bodies involved in India’s financial and crypto policy discussions, directly before the Standing Committee on Finance.

The DEA has previously been involved in consultations around India’s cryptocurrency policy and its coordination with global regulatory initiatives. As far back as 2022, the department was working on a crypto consultation paper while highlighting the need to study regulatory approaches adopted by other countries.

More recently, India’s parliamentary review has become considerably more structured. EtherWorld reported in May that India was studying global crypto regulation models as lawmakers examined the challenges created by cross-border digital assets, regulatory arbitrage and capital moving through crypto markets.

The cancelled sitting does not mean that Parliament’s VDA study has been abandoned. It only removes one scheduled hearing from what has already become a lengthy consultation process.

India’s crypto sector has seen similar periods of uncertainty before. EtherWorld previously examined how India’s crypto rulebook entered a wider review as policymakers confronted stablecoins, enforcement activity and changing international regulation.

Parliament Has Spent Months Studying VDAs

Earlier this year, lawmakers heard from multiple government agencies responsible for taxation, financial intelligence and regulation. In January, representatives of the Financial Intelligence Unit-India (FIU-IND) and Central Board of Direct Taxes (CBDT) were called to give oral evidence on the same subject: “A Study on Virtual Digital Assets (VDAs) and Way Forward.”

The committee subsequently continued consultations with other institutions. EtherWorld also reported that the Parliament Finance Panel would meet the RBI over crypto regulations, bringing the central bank directly into the parliamentary review. That meeting provided one of the clearest signals so far about the divide between crypto adoption and regulatory acceptance.

The RBI maintained its cautious approach, and EtherWorld later reported that RBI rejected granting cryptocurrencies legal status before the Finance Panel. The committee also interacted with the Institute of Chartered Accountants of India, adding questions around accounting, taxation and disclosure to the broader regulatory debate.

India has one of the world’s largest crypto user bases, but regulators remain cautious about formally integrating privately issued cryptocurrencies into the financial system. Coinbase CEO Brian Armstrong recently described India as crypto’s largest market by adoption, a development EtherWorld covered in India Is Crypto’s Largest Market, Says Coinbase CEO.

The debate has also reached individual parliamentarians. Earlier this year, MP Raghav Chadha argued that India should provide clearer legal recognition and safeguards for the sector rather than allowing uncertainty to push companies abroad. EtherWorld covered his intervention in Indian MP Raghav Chadha Pushes Crypto & Blockchain Reforms.

BREAKING: 🇮🇳 Parliamentary Standing Committee on Finance cancels August 27 hearing with DEA on India’s crypto asset framework. pic.twitter.com/GxS2xnQSxK

— Crypto India (@CryptooIndia) August 25, 2026

India Regulates Crypto Without a Complete Rulebook

Income from VDAs has been subject to a 30% tax regime, while qualifying transactions attract 1% TDS. EtherWorld has tracked the framework since its introduction in Cryptocurrency Taxation in India. Despite repeated requests from the industry for changes, India’s Budget 2026 offered no crypto tax relief, leaving the core tax structure largely intact.

Crypto platforms operating in India increasingly have to interact with FIU-IND and anti-money-laundering requirements. EtherWorld reported that 49 crypto exchanges had registered with FIU, illustrating how registration is increasingly functioning as a compliance gateway even without a dedicated crypto licensing law.

In June, India’s FIU targeted crypto OTC trades above $10,000, tightening reporting expectations around larger over-the-counter transactions. Tax visibility is growing as well. EtherWorld previously reported on India intensifying crypto oversight as authorities froze assets and issued thousands of tax notices.

A further layer arrived in July when India issued detailed reporting requirements under the Crypto-Asset Reporting Framework. As explained in India Issues New Crypto Tax Rules From 2026, exchanges, custodians and other covered service providers face expanded obligations around identifying users and reporting transactions.

India therefore already has tax rules, AML requirements, reporting systems and enforcement mechanisms around crypto.

What Happens to India’s Crypto Policy Now?

During the Monsoon Session, attention shifted toward whether India could introduce an interim framework rather than waiting indefinitely for a comprehensive crypto law. EtherWorld explored that possibility in Will India Regulate Crypto? What to Expect From Monsoon Session, including discussion around greater oversight and the possibility of self-regulatory structures operating under government supervision.

Independent policy research is pointing in a similar direction. A Gujarat National Law University study analysed several possible regulatory models and argued for greater legal clarity, as covered by EtherWorld in India Needs Clear Crypto Rules, Says GNLU Report.

Crypto adoption remains substantial, stablecoins are increasingly relevant to cross-border digital markets, and enforcement agencies are building better tools for tracing activity. Meanwhile, international jurisdictions are moving toward dedicated frameworks for stablecoins, exchanges and digital-asset market structure.

According to the Lok Sabha Secretariat notice, the Standing Committee’s next scheduled meeting will take place on September 3, when representatives of the Department of Revenue and CBDT are expected to discuss direct-tax reforms. The notice does not specify when the VDA hearing with the DEA will be rescheduled.

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Related Articles

1. India Studies Global Crypto Regulation Models Amid Growing Capital Outflow
2. India’s Crypto Rulebook Is Under Review
3. Parliament Finance Panel to Meet RBI Over Crypto Regulations on July 2
4. India’s RBI Rejects Crypto Legal Status Before Finance Panel
5. Indian MP Raghav Chadha Pushes Crypto & Blockchain Reforms

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