The Parliament Standing Committee on Finance could take up other recommendations to enhance transparency and oversight of cryptocurrency and other virtual digital assets including Blockchain based on deliberations, according to individuals who attended the committee meetings.
The committee, led by Ajitsadu Bhartruhari Mahtab from Bharatiya Janata Party (BJP), is drafting a report on VDAs and could request the Federally-funded government to beef up tracking technologies on cryptocurrencies. The legislature can also suggest increasing the powers of the blockchain to enhance monitoring and seek feedback from stakeholders on the need for maintaining the existing policy framework in India on crypto assets.
Blockchain is the distributed digital ledger that is used to record cryptocurrency transactions. Despite the technology, if used properly, it could assist authorities in increases transactions monitoring and suspicious transactions identification.
Since September 8 last year the committee has met eight times in the course of its inquiries into VDAs. It encompasses cryptocurrencies, as well as non-fungible tokens (NFTs), which are the unique digital certificates attaching to digital items.
Financial Intelligence Unit (FIU)-India reported that data available indicated that the number of KYC verified users connected with registered VASPs (including crypto exchanges) was increasing. As of end April 2025, there were roughly 36 million such accounts, and estimated crypto holdings of around Rs 34,000 crore.
In May 2026, the number of KYC-verified accounts stood at around 39.3 million. But, estimated value of Crypto holdings dropped to Rs 20,436 crore.
On the assumption of these figures, the overall estimated holding per KYC verified account in May 2026 was approximately Rs 5200.
The recommendations are possible options as the government is beefing up its regulation of the industry. In September, the 10 VDA services providers were slapped with non-compliance notices by the FIU-India for its failure to adhere to the anti-money laundering norms specified by the Prevention of Money Laundering Act.
The final proposed recommendations of the committee will come into public awareness when a report of the committee is formally laid before Parliament.