India’s Crypto Debate Heats Up: Inside Parliamentary Questions Since 2025
India’s relationship with crypto assets has never been simple, but what is unfolding inside Parliament reflects a shift beyond the usual debates around bans and permissions. The sessions running through 2025 and into early 2026 have taken on a more structured tone. Lawmakers are no longer focused on defining virtual digital assets; instead, discussions are increasingly centred on financial flows, compliance mechanisms, and the broader potential of the underlying technology for public use. This shift suggests that India’s crypto policy is becoming more structured and enforcement-oriented, while conversations continue around enabling innovation and participation.
One of the more notable data points to emerge from recent sessions is the state-wise breakdown of TDS collected on crypto transactions. The numbers indicate strong growth. Nationwide collections rose from roughly 221 crore rupees in 2022–23 to over 511 crore rupees by 2024–25. Maharashtra alone contributed 293.40 crore rupees of that latest figure, accounting for a significant share of the country’s crypto tax revenues. Karnataka also recorded substantial growth, increasing from just under 39 crore rupees to nearly 134 crore rupees during the same period.
The regional trends are equally revealing. Delhi, which recorded relatively low collections in 2023–24, saw a sharp increase to over 28 crore rupees the following year, indicating growing participation in crypto-related activities. Telangana, on the other hand, saw a decline in collections, while states such as Uttar Pradesh and Bihar continued to report comparatively lower figures. Overall, the data reflects a market that is expanding but remains concentrated in key financial and technology-driven regions rather than being evenly distributed across the country.
The regulatory response has focused on strengthening oversight and compliance. Virtual digital assets have been brought under the framework of the Prevention of Money Laundering Act, providing greater regulatory clarity for stakeholders. Authorities have also taken steps to address non-compliant offshore platforms by issuing notices and restricting access where necessary. In parallel, enforcement agencies have acted against instances of financial misconduct linked to digital assets, with investigations leading to asset seizures and legal proceedings in certain cases.
In early 2026, onboarding requirements for crypto platforms were further strengthened. The updated KYC framework now includes measures such as liveness verification, geo-tagged data, and bank account validation to enhance user authentication. These steps are aimed at improving transparency and traceability within the ecosystem. Additionally, over 13,800 law enforcement personnel have been trained to handle crypto-related investigations, supported by digital forensic capabilities.
At the same time, discussions in Parliament continue to highlight the potential of blockchain technology beyond trading. The National Blockchain Framework is being explored for applications in public administration, with examples such as e-stamp systems in Maharashtra and mobile-based authentication solutions in Madhya Pradesh already in operation. These developments point to a broader approach that balances regulatory oversight with the exploration of technological use cases.
Taken together, recent parliamentary discourse reflects a more defined policy direction. The focus is on enhancing transparency, strengthening compliance, and exploring practical applications of blockchain technology. As the ecosystem evolves, the emphasis will likely remain on maintaining this balance while supporting sustainable growth.
