India Crypto Industry to Face Committee Scrutiny Amid Strict Rules

India's crypto regulatory landscape is set for a major overhaul as the Parliamentary Standing Committee on Finance gears up to meet with key industry players. Binance, WazirX, and ZebPay have been invited to testify before the committee on May 20, sparking hopes of clearer standards for the country's Virtual Digital Assets (VDAs) sector.

The meeting comes at a critical juncture, with India's strict VDA tax regime and new reporting rules having pushed significant volumes offshore. The government's measures have imposed a 30% tax on crypto gains, as well as a 1% tax deducted at source on most trades.

Platforms face daily fines for failing to file data and lump-sum penalties for inaccurate reports, prompting exchanges like ZebPay to upgrade their systems to track flows. WazirX has warned that these measures still hurt liquidity and India's competitiveness.