India has emerged as a world chief on this ecosystem. It has persistently ranked first on the Chainalysis International Crypto Adoption Index and is house to one of many world’s largest Web3 developer communities, as highlighted within the Electrical Capital Developer Report 2024.
This sustained momentum presents a well timed and strategic alternative for India to interact with a know-how that’s quickly transferring from the margins to the mainstream of the digital financial system.
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Throughout its G20 Presidency in 2023, India performed a pivotal position in constructing international consensus on the necessity for a coordinated regulatory framework for VDAs—an pressing requirement on the time. Since then, most G20 jurisdictions have made vital progress. The European Union’s landmark MiCA framework got here into full pressure in December 2024, setting a world precedent. Within the U.S., regulatory momentum has picked up, with the Securities and Alternate Fee (SEC) forming a devoted Crypto Job Power, and a presidential govt order on the Bitcoin Reserve and the U.S. Digital Asset Stockpile pushing the agenda towards concrete legislative motion.
Most just lately, on June 17, the U.S. Senate handed the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act. These developments spotlight the essential position legislatures play in shaping rising tech coverage and reveal how each legislative and govt branches should work collectively to maintain regulatory momentum.In India, nevertheless, a proper discourse on regulating VDAs stays absent. The present framework is proscribed to AML/CFT oversight, a steep taxation regime, and a proposal to gather and alternate knowledge on VDA transactions through the CARF (Crypto-Asset Reporting Framework).One of many obtrusive gaps in India’s governance structure is Parliament’s restricted engagement with rising applied sciences, notably VDAs and blockchain improvements. It’s noteworthy that between 2021 and 2025, of the 52,116 questions requested within the Lok Sabha, solely 0.063% had been associated to cryptoassets, cryptocurrency, or VDAs.
Within the Rajya Sabha, this determine stands at 0.08% of the 32,398 questions from 2021–2024. As for debates, the seventeenth Lok Sabha noticed solely three discussions—two by Zero Hour speeches and one Particular Point out. The continued 18th session has seen none up to now. In 2021, Parliament did point out its intent to develop a legislative framework on cryptoassets, however that effort didn’t transfer ahead.
Curiously, India introduced plans to launch a Dialogue Paper (DP) on VDAs in July 2024. The DP is an important first step; nevertheless, almost a yr has handed for the reason that announcement, and the paper continues to be awaited. Its well timed launch, coupled with engagement from a proactive and knowledgeable Parliament, will probably be key to advancing this imaginative and prescient.
With solely a handful of MPs at the moment geared up to navigate the nuances of digital innovation, there’s a urgent must construct institutional capability for knowledgeable legislative engagement.
The Honourable Lok Sabha Speaker just lately underscored the urgency of those points, highlighting the significance of acceptable regulatory programs, knowledge privateness safety, and equitable tech entry being mentioned throughout nationwide parliaments.
The complexity of VDAs—spanning taxation, monetary markets, safety, privateness, and international compliance—requires sturdy and sustained parliamentary dialogue. Sustaining this momentum would require enhancing MP consciousness by briefing classes, committee consultations, and cross-party engagement.
India’s formidable ‘Viksit Bharat’ imaginative and prescient for 2047 hinges on inclusive development and management in not solely digital public infrastructure but in addition dawn sectors resembling AI, digital know-how, and—critically—fintech.
As VDAs develop into an integral a part of this panorama, the forthcoming Dialogue Paper presents a well timed alternative to chart a transparent, forward-looking regulatory path. However turning this chance into motion would require extra than simply coverage intent; it calls for a proactive, knowledgeable, and engaged Parliament.
A robust legislative basis—grounded in debate and cross-party collaboration—will probably be important for India to not solely preserve tempo with international developments but in addition lead in shaping the way forward for digital finance and know-how governance.
(R Venkatesh is Head of Public Coverage at CoinSwitch, Saurya Mishra, LAMP Fellow, PRS Legislative Analysis and Monya is Senior Public Coverage Analyst at CoinSwitch)
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t signify the views of the Financial Instances)
