#DigitalAssetBill
India’s Finance Bill 2025 introduces significant measures to regulate and monitor digital assets, including cryptocurrencies. While the definition of Virtual Digital Assets (VDAs) remains unchanged, the bill enhances the government’s authority to track and investigate digital transactions. This includes provisions allowing tax officials to access encrypted digital data and retrieve records from cloud storage and chat applications, aiming to strengthen tax enforcement and curb illicit activities.   
Finance Minister Nirmala Sitharaman emphasized the necessity of these measures, citing the previous Income Tax Act’s inadequacy in providing legal backing for investigating digital assets. The new provisions are designed to improve the tracking of digital assets and ensure compliance with tax laws.  
These developments align with global trends, as countries like the United States also move towards clearer regulatory frameworks for digital assets. For instance, the Financial Innovation and Technology for the 21st Century Act (FIT21) in the U.S. aims to provide regulatory clarity for digital assets, distinguishing between commodities and securities. 
In summary, India’s Finance Bill 2025 marks a significant step towards comprehensive regulation of digital assets, enhancing transparency and aligning with international efforts to establish clear legal frameworks in the rapidly evolving digital economy.