Committee concludes year‑long VDA review The Parliamentary Standing Committee on Finance has formally closed its discussions on Virtual Digital Assets (VDAs). Chairperson **Bhartruhari Mahtab** said the panel identified several regulatory grey zones that need urgent attention and that a response from the Union government is expected within the next week. Once the government’s answers are received, the committee will compile its findings into a report for submission.
A year of stakeholder engagement The study, titled *“A Study on Virtual Digital Assets (VDAs) and Way Forward,”* began in September 2025. Over the past twelve months, the committee met a range of stakeholders, including the **Reserve Bank of India (RBI)**, the **Central Board of Direct Taxes (CBDT)** and other entities that have registered to deal with virtual assets. These interactions were intended to map the current landscape and pinpoint gaps in policy and enforcement.
Core concerns: regulatory vacuum Mahtab highlighted a central paradox: *“the government is not accepting virtual digital assets, doesn’t want to regulate them, but not regulating them also leaves greater scope for different types of indulgences.”* The lack of a clear regulatory framework, he argued, creates uncertainty for investors, businesses and tax authorities, potentially fostering illicit activity or market abuse.
Issues left for future committees While the VDA discussion was the focus of the meeting, members raised ancillary topics. Concerns about **UPI** were noted, though the subject was not on the agenda. Mahtab indicated that a new committee, slated to be formed in October, will likely address UPI‑related matters. Similarly, questions about **GDP calculations** and related formulas were raised; these, too, will be examined by the upcoming body.
Next steps The Finance Committee will await the government's written response, after which it will finalize its report and submit recommendations. The report is expected to outline a regulatory roadmap, address tax treatment, and suggest mechanisms to curb the identified grey areas.
Broader debate The committee’s findings arrive amid a national conversation on how India should treat cryptocurrencies and other digital assets. The term **Virtual Digital Assets** is already embedded in the country's tax framework, but a comprehensive regulatory approach remains unsettled.
--- *For continuous updates on the VDA policy trajectory, stay tuned to Moneycontrol and related financial news portals.*