RBI Officials Face Scrutiny in Parliament Over Cryptocurrency Regulation

The Parliamentary Standing Committee on Finance is set to hold consultations with RBI officials on July 2 in New Delhi regarding the future regulatory framework for cryptocurrencies.

The committee will be discussing the 'oral evidence' of RBI representatives on the subject, 'A Study on Virtual Digital Assets (VDAs) and Way Forward', which highlights concerns over money laundering and terror financing.

RBI governor Sanjay Malhotra had earlier stated that digital currencies pose a significant risk, prompting the standing committee to take a cautious approach.

Finance Minister Nirmala Sitharaman emphasizes that cryptocurrencies are taxable assets rather than legal tender, with strict central taxation rules in place. She also advocates for a unified global approach to regulation to prevent illicit activities.