India's Parliament Consults ZebPay, WazirX & Binance on Crypto's Future

India's Parliament formally engaged with major crypto exchanges ZebPay, WazirX, and Binance on May 20, 2026, in what analysts describe as one of the most concrete steps yet toward a structured regulatory framework for virtual digital assets (VDAs).

The Standing Committee on Finance, chaired by Bhartruhari Mahtab, convened three sessions at Parliament House Annexe in New Delhi. The first session, from 11:00 AM to 12:30 PM, brought exchange representatives together with officials from the International Financial Services Centres Authority (IFSCA), the Ministry of Finance, and the Ministry of Corporate Affairs.

Discussions centered on operational realities, compliance practices, tax burdens, and investor protection. Committee Chairman Mahtab noted that significant capital is flowing out of India for crypto investments and called for stronger rules inspired by frameworks in the US and China. Exchanges pushed for clearer policies and lower taxes, arguing that the current 30% tax on gains combined with a 1% TDS on every transaction creates harsh conditions for investors.

Minister of State for Finance Pankaj Chaudhary had previously told Parliament that the government had no fixed timeline for finalizing VDA regulations, citing the borderless nature of crypto assets and the need for international coordination. Still, the format of the meeting—a multi-stakeholder consultation rather than a enforcement briefing—marks a shift in tone from years of regulatory caution.

Crypto trading remains legal in India under the Income Tax Act and AML compliance rules under the Prevention of Money Laundering Act (PMLA). The meeting does not produce immediate policy changes but signals that the conversation has moved from whether India will regulate crypto to how it will do so. The committee's findings may inform future legislation, though the government is not bound by a specific timeline.