RBI to Testify Before Indian Parliament as Crypto Regulation Review Reaches Critical Juncture

The Indian government's ongoing review of its crypto ecosystem is set to reach a critical juncture on July 2, when the Parliamentary Standing Committee on Finance holds a crucial meeting. The committee has summoned representatives from the Reserve Bank of India (RBI) and the Institute of Chartered Accountants of India (ICAI) to discuss the future of crypto regulation in the country.

The RBI's testimony is significant, given its cautious stance on cryptocurrencies, warning about risks to financial stability and opposing formal crypto legalization. Committee chairman BJP MP Bhartruhari Mahtab has previously revealed that the RBI remains against allowing or regulating crypto activities in India.

The meeting comes shortly after the Enforcement Directorate (ED) uncovered alleged unauthorized cross-border crypto transfers worth over ₹2,500 crore. In June, the ED conducted raids on multiple crypto payment and remittance firms, including Transak, Onramp.money, and Onmeta, alleging violations under FEMA regulations.