India’s Raghav Chadha Advocates Legalization of Cryptocurrency
- Raghav Chadha calls for legalizing cryptocurrencies in India.
- Offshore trading increases due to current regulations.
- Potential revenue gain with clear regulations.
Raghav Chadha, a Member of Parliament from India’s Rajya Sabha, has called on the government to legalize virtual digital assets during a budget debate on February 10, 2026.
His plea highlights the need for regulatory clarity amidst significant offshore crypto trading shifts impacting the Indian economy.
Raghav Chadha, an MP from the Aam Aadmi Party, argued in India’s Rajya Sabha for the legalization of cryptocurrencies. Currently, VDAs face a prohibitive 30% tax, discouraging domestic activity. Chadha stated that penalizing VDAs while taxing them sends a contradictory message. He urged the government to recognize VDAs as an asset class for transparency and accountability.
“We tax the virtual digital assets as if they are legal but we regulate them as if they are illegal.” – Raghav Chadha, MP (Rajya Sabha), Aam Aadmi Party (AAP) source
Chadha highlighted that regulatory inconsistency drives Indian traders to use offshore exchanges. This has resulted in an offshore shift of 73% of the country’s crypto trading activity. The financial implications are significant, with ₹4.8 lakh crore in transactions redirected. Legalizing VDAs could generate ₹15,000-20,000 crore annually in tax revenue, a substantial economic benefit.
Proponents believe regulated cryptocurrencies could attract institutional investments and technological advancements. Chadha called for laws that prioritize investor protection and money laundering prevention, emphasizing that prohibition is not protection. Regulation is protection.
India’s regulatory stance affects local and global crypto dynamics, highlighting the complex interplay between policy and innovation. Proponents believe regulated cryptocurrencies could attract institutional investments and technological advancements. Chadha called for laws that prioritize investor protection and money laundering prevention.
