India's Parliamentary Standing Committee on Finance has set a hearing on virtual digital assets for September 16, and the Department of Economic Affairs will testify. So yes, this looks like a make-or-break stretch in the country's crypto regulatory story.
Right now, cryptocurrencies are not legal tender in India, but they are not banned either. Investment gains face a flat 30% tax, plus a 1% tax deducted at source (TDS). By mid-2026, 54 virtual digital asset service providers had registered with the Financial Intelligence Unit (FIU), including domestic exchanges such as CoinDCX and CoinSwitch, and global firms like Binance and Coinbase. But the bigger picture is blunt: an estimated 91.5% of India's crypto trading volume still goes to offshore platforms, a sign that onshore compliance remains limited.
The committee has already heard clashing positions from the Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI). The RBI is against legalizing cryptocurrencies, pointing to financial stability risks. The ICAI, by contrast, wants a legal framework to regulate the sector. And the result of this hearing could steer where India's crypto policy goes next.