New Delhi [India], August 15: The Parliamentary Standing Committee on Finance has announced that it will conduct a detailed study on “Virtual Digital Assets (VDAs) and Way Forward” during the fiscal year 2024-25. The announcement, published as Item No. 3141 in the Lok Sabha Bulletin-Part II on August 14, highlights India’s growing engagement with emerging digital asset technologies at a time when global economies are debating their role in shaping future financial systems.

Industry Engagement and Policy Push

The Parliamentary committee’s decision follows a formal submission made in late July by a delegation of prominent Web3 and digital asset industry stakeholders. The delegation included Digital South Trust, Bharat Web3 Association, Hashtag Web3, CoinDCX, BlockOn Ventures, and KoinBX. Collectively, they presented a set of policy recommendations to the Parliamentary Committee’s Chairperson, calling for innovation-friendly frameworks that would enable India to capture the next wave of digital economic growth.

The stakeholders argued that a clear and adaptable regulatory structure could unlock a USD 100 billion Web3-driven economy by 2035. According to their estimates, such a framework could also help create over 7 million jobs, attract USD 2 billion annually in foreign investment, and ensure the development of transparent, inclusive, and globally competitive financial systems.

Expert Perspectives

Industry leaders welcomed the Parliamentary committee’s move, underlining its significance for India’s long-term economic vision.

Sudhakar Lakshmanaraja, Founder of Digital South Trust, said:

“India is in a unique position to become a global leader in the Web3 space. The government’s focus on VDAs and a regulatory framework will provide the clarity necessary for the industry to flourish, driving innovation, investment, and job creation.”

Echoing similar sentiments, Vedang Vatsa, Founder of Hashtag Web3, stated:

“Virtual digital assets can contribute to growth by enabling new business models, creating opportunities across industries, and enhancing digital economies globally. With appropriate regulatory frameworks, these assets can bring significant benefits to various sectors and help drive innovation forward.”

Understanding Web3 and Virtual Digital Assets

Web3 is often described as the next evolution of the internet, built on decentralised technologies such as blockchain. Unlike Web2, which is dominated by centralised platforms, Web3 prioritises user control, data ownership, and transparency.

At the heart of this ecosystem are Virtual Digital Assets (VDAs), which include:

• • Cryptocurrencies such as Bitcoin and Ethereum

• • Stablecoins pegged to fiat currencies

• • Tokenised assets representing physical or financial assets

These digital assets enable a wide range of new economic activities, from peer-to-peer transactions to decentralised finance (DeFi) platforms. They are also powering innovations in areas like supply chain management, gaming, digital identity, and cross-border trade.

National Development Goals and Digital Inclusion

The delegation of industry representatives emphasized that VDAs and Web3 technologies align strongly with India’s Digital India mission and the long-term vision of Viksit Bharat 2047. By expanding access to financial services, these technologies could promote inclusion, empower entrepreneurs, and drive regional development.

For instance, decentralised finance solutions could extend credit and investment opportunities to individuals and businesses traditionally excluded from the formal banking system. Similarly, tokenised assets could create new markets for micro-investments, allowing broader participation in wealth creation.

Significance of the Committee’s Study

The Parliamentary Standing Committee’s decision to prioritize VDAs signals a proactive policy approach. The upcoming study is expected to cover a wide spectrum of issues, including:

• • Regulatory clarity on taxation, compliance, and licensing of VDA businesses

• • Economic implications, including foreign investment and job creation potential

• • Risk management concerning investor protection, anti-money laundering (AML), and financial stability

• • Technological aspects, such as blockchain adoption, cybersecurity, and interoperability

The outcome of this study could shape the foundation of India’s VDA policy framework, striking a balance between encouraging innovation and safeguarding consumer and systemic interests.

India’s Position in the Global Digital Economy

Globally, governments are grappling with the rapid growth of digital assets. While some countries have embraced comprehensive regulations, others remain cautious, citing risks of volatility and misuse. India’s decision to engage through a structured parliamentary process positions it as a thoughtful participant in the global dialogue on digital finance.

By exploring a balanced regulatory roadmap, India could establish itself as a hub for Web3 innovation, drawing investment and talent while contributing to the global evolution of the digital economy.

Through its Parliamentary review, India demonstrates a proactive approach compared to many other nations still debating digital asset regulation.

Conclusion

The Parliamentary Standing Committee on Finance’s decision to examine “Virtual Digital Assets and Way Forward” represents a milestone in India’s financial policy landscape. It acknowledges both the opportunities and challenges posed by digital assets and reflects the country’s ambition to lead in the Web3 era through structured Parliamentary engagement.

If the Parliamentary study results in an adaptable and innovation-friendly framework, India could unlock significant economic potential, foster millions of jobs, and advance its digital inclusion agenda—while safeguarding the integrity of its financial system.

As the world transitions toward decentralised digital economies, this Parliamentary initiative underscores India’s resolve to stay ahead of the curve and chart a course toward sustainable and inclusive growth.

Disclaimer: This article is based on information originally published by ANI News. All rights and credits for the original reporting belong to ANI News and the respective author. The content here has been adapted for informational purposes.