Summary India’s parliamentary finance committee is considering stronger cryptocurrency tracking and blockchain surveillance but has not introduced new exchange compliance requirements. Verifi
India’s Parliamentary Standing Committee on Finance is considering recommendations to strengthen cryptocurrency transaction tracking, blockchain surveillance, and market transparency.
According to Hindustan Times, the panel may ask the government to improve tracking technology and expand its blockchain surveillance capabilities. Lawmakers may also recommend stakeholder consultations on whether India should maintain its existing position on cryptocurrency assets.
The committee is preparing recommendations and has not announced binding measures or additional compliance requirements for cryptocurrency exchanges. Its review covers oversight of digital asset transactions while the government’s broader regulatory approach remains unresolved.
Bharatiya Janata Party lawmaker Bhartruhari Mahtab chairs the panel, which began examining virtual digital assets in September 2025. It has held eight meetings since September 8 that year, covering cryptocurrencies and other assets within the category. Mahtab has highlighted digital asset regulatory gaps, while the committee has consulted the RBI, CBDT, and digital asset industry representatives.
On September 16, Mahtab indicated that the panel had completed its consultations and awaited government responses before preparing its report. He described unresolved questions surrounding the government’s reluctance to recognize digital assets or establish a broader regulatory framework.
Also Read: Ali Martinez Identifies $1.27 Trigger for SUI’s Potential Fourth Breakout
FIU-India figures show registered virtual asset service providers held approximately 36 million verified accounts at the end of April 2025. Estimated cryptocurrency holdings across those accounts totalled approximately ₹34,000 crore during that period.
By May 2026, the verified account total had increased to approximately 39.3 million across registered service providers. Estimated holdings fell to around ₹20,436 crore, bringing average cryptocurrency holdings to roughly ₹5,200 per verified account.
The reported figures show an increase of approximately 3.3 million verified accounts between the two reporting periods. Aggregate holdings declined by approximately ₹13,564 crore over the same period, despite the higher account total.
The committee’s review includes the tools authorities use to trace cryptocurrency transfers and connect transaction records across different blockchains. FIU-India can already follow cryptocurrency movements between networks, while experts have identified a need for more advanced tracking capabilities.
India requires virtual asset service providers to register with FIU-India and comply with applicable anti-money laundering provisions, including customer due diligence. These requirements already apply despite the absence of a comprehensive regulatory framework governing the wider cryptocurrency market.
Possible monitoring recommendations could affect transaction records, customer verification, suspicious activity reporting, and transfers involving offshore cryptocurrency platforms. The panel has not detailed additional reporting standards, technical specifications, or implementation deadlines for exchanges.
Stronger tracking systems could support investigations involving funds moving through multiple networks and transactions connected to overseas service providers. The government would need to announce specific measures before exchanges face additional obligations arising from the committee’s review. The panel’s forthcoming report will set out its recommendations, while the government’s response will determine any subsequent policy changes.
Also Read: XRP Could Build Toward $23 Despite October Weakness, EGRAG’s Chart Suggests
The post India Weighs Stronger Crypto Tracking as Exchanges Face Potential Compliance Changes appeared first on 36Crypto.
