India’s Standing Committee on Finance held a formal session on Wednesday at Parliament House Annexe in New Delhi to discuss virtual digital assets and the path forward for crypto regulation in the country.
Representatives from ZebPay, Binance, and Wazir X appeared before the committee in the morning session, followed by the International Financial Services Centre Authority and then the Ministry of Finance and Ministry of Corporate Affairs in the afternoon.
The Lok Sabha Secretariat notice, dated May 13, 2026, confirms the session was scheduled for May 20 under the subject “A Study on Virtual Digital Assets and Way Forward.” The committee is chaired by Shri Mehtab and has also previously heard from representatives of Bharat Web3 Association, CoinSwitch, CoinDCX, and other industry participants.
India has somewhere between 100 and 200 million crypto users, one of the largest user bases anywhere in the world. Since 2022, those users have been operating in a grey zone created by the government’s decision to impose a 30% flat tax on crypto gains with no provision for loss offsetting.
The tax did not eliminate crypto activity. It drove volume offshore to exchanges outside Indian jurisdiction, outside Indian tax collection, and outside Indian consumer protection frameworks. The government is now attempting to reverse that outcome by formalising regulation with direct input from the exchanges themselves.
The most pointed concern surrounding Wednesday’s session is the presence of WazirX at the table.
In 2024, WazirX suffered a security breach that resulted in the loss of approximately $230 million in user funds. Hundreds of thousands of Indian retail investors have been in restructuring proceedings since then, waiting to learn what fraction of their savings they will recover. A public dispute between WazirX and Binance over ownership and responsibility during the crisis left users frozen out while the two companies argued about liability in public.
WazirX participated in Wednesday’s parliamentary discussions on how to design rules that would protect Indian retail crypto investors going forward.
The 2022 tax regime was widely interpreted as a signal that authorities wanted to discourage the asset class. The decision to formally consult exchanges, including international players like Binance, shows the government has concluded that discouragement is not working and formalisation is preferable to continued grey zone activity.
The committee has not yet published its findings or recommendations from the sessions. Further sittings are expected as the consultation process continues.
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