India’s Parliament Dances with Crypto: A Grand Entanglement of Coins and Cluelessness

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India’s Standing Committee on Finance, a gathering of esteemed individuals who have mastered the art of deliberation, convened at Parliament House Annexe in New Delhi on May 20 to hear oral evidence from representatives of ZebPay, Binance, and WazirX. One might imagine the scene as a rather stately tea party where the biscuits are replaced by blockchain diagrams and the clinking of teacups is drowned out by the hum of cryptographic algorithms. The subject? Virtual digital assets-a phrase that sounds suspiciously like the title of a lost Victorian novel about a lost ledger.

This hearing, a rare and somewhat dignified engagement between India’s legislative apparatus and the global crypto industry, marks a moment of profound formality. After years of regulatory ambiguity that sent trading volume fleeing to offshore platforms like a particularly timid goose, the government has finally decided to don its metaphorical monocle and take a closer look at the situation. It’s akin to a man finally noticing the elephant in the room-though in this case, the elephant is wearing a bow tie and carrying a ledger.

The Tax That Drove Volume Offshore

In 2022, India introduced a 30% flat tax on crypto gains, a policy so enthusiastically received that it caused a mass exodus of trading volume to offshore platforms. One might say it was less of a tax and more of a polite suggestion: “Do go away, and take your liquidity with you.” Accompanied by a 1% TDS on every transaction, these measures were less about suppression and more about redirection, much like a well-meaning but slightly tipsy uncle steering guests toward the less crowded part of the buffet.

The Lok Sabha session, a grand affair of parliamentary pomp, represents a belated recognition that discouragement has not worked. It seems the government has finally realized that simply frowning at the crypto industry won’t make it disappear. Instead, they’ve opted for structured engagement, a term that sounds suspiciously like code for “we’re still clueless, but at least we’re in the same room as the experts now.”

Exclusive: Pi42 CEO Speaks to Coinpedia

Avinash Shekhar, Co-Founder and CEO of Pi42, spoke to Coinpedia about the significance of Wednesday’s parliamentary session. One might imagine him sipping Darjeeling from a delicate porcelain cup as he delivered his insights with the gravitas of a man who has seen the rise and fall of empires-or at least several cryptocurrency markets.

“India bringing major global and domestic crypto platforms into formal policy discussions is a significant step for the industry’s long-term evolution,” Shekhar said. “It signals that the conversation is gradually moving from uncertainty toward structured engagement between policymakers and the ecosystem.” His words, delivered with the precision of a pocket watch, suggest that the government is finally beginning to grasp the intricacies of digital assets-or at least the basics of how to avoid looking like a complete buffoon.

Shekhar, ever the pragmatist, noted that India’s existing user base is so vast it could fill a cricket stadium and then some. “India already represents one of the world’s largest digital asset user bases,” he said, “and with participation continuing to grow, regulatory clarity becomes increasingly important for investor protection, market transparency, and responsible innovation.” One might imagine him adding, “And also for preventing the government from looking like a rather inept magician who’s forgotten the trick halfway through the performance.”

He described the practical value of direct dialogue between policymakers and practitioners. “These discussions can help policymakers better understand how areas such as compliance, custody, taxation, cybersecurity, and cross-border transactions function in practice.” It’s a sentiment that could be summarized as, “If you want to build a house, it helps to know what a brick is-and also that it’s not made of jelly.”

On the stakes of getting the framework right, Shekhar was direct. “A balanced and well-defined framework would strengthen confidence among users, institutions, and businesses,” he said. “It would also encourage more innovation and liquidity to remain within regulated Indian platforms rather than moving offshore.” One might imagine him concluding with a nod and a wink, “After all, who wants to be the reason that the next Bitcoin billionaire is a Canadian with a penchant for maple syrup and a suspiciously large sock collection?”

The Compliance Infrastructure Challenge

The regulatory conversation in India extends beyond crypto alone. Raghuveer Kancherla, Co-Founder at compliance infrastructure company Sprinto, told Coinpedia that the broader fintech regulatory environment compounds the challenge for companies operating across multiple verticals simultaneously. One might imagine him speaking with the weary resignation of a man who has spent too many evenings sorting out the tax implications of a single banana.

“India’s fintech regulatory environment is both complex and fast-moving,” Kancherla said. “RBI, SEBI, DPDP, and emerging crypto frameworks mean the rules governing these businesses are changing in real time.” It’s a situation that sounds less like regulation and more like a game of musical chairs, where the chairs are constantly being rearranged by a particularly mischievous child.

He described the operational burden this creates for growing companies. “Every new framework adds surface area. Every audit cycle creates drag.” It’s a sentiment that could be paraphrased as, “Running a business in India is like trying to bake a soufflé while someone keeps adding ingredients you didn’t ask for-and also insists on tasting it every five minutes.”

Kancherla argued that the pace of regulatory change has outgrown manual compliance management entirely. “Manual GRC was not built for this pace. Autonomous GRC is the only way to keep up by monitoring continuously, adapting in real time, and treating compliance as infrastructure rather than overhead.” One might imagine him concluding with a sigh, “After all, who has time to read the fine print when the fine print is updating itself faster than a squirrel on a caffeine binge?”

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2026-05-21 07:24