India Finance Panel Flags P2P Crypto Bank Freezes for October Review

India’s Parliamentary Standing Committee on Finance raised concerns about bank and UPI account freezes linked to peer-to-peer crypto transactions on September 16. Chairman Bhartruhari Mahtab said the issue did not form part of Wednesday’s formal proceedings, but members had expressed concerns about it.

The panel has spent about a year examining virtual digital assets, including consultations with financial authorities and crypto industry participants. Mahtab said the committee expects the government to respond next week before it prepares and submits its report. Meanwhile, the current committee will conclude its work before a new Finance Committee is constituted in October.

Mahtab said the new committee could take up concerns surrounding UPI transactions tied to P2P crypto sales. The development comes as Indian authorities continue examining risks around crypto transactions, taxation, fraud and financial-system exposure. No new rule or change to existing crypto regulations resulted from Wednesday’s discussion.