This comes amid the prevailing view that the recommendations by a committee headed by former finance secretary Subhash Garg in 2019 for a blanket ban on these assets had become outdated.

The new committee’s ambit could be to explore the use of blockchain for technological enhancement and suggest ways to regulate cryptos as digital assets instead of a currency.

The committee may also be asked to study ways to operationalize the Reserve Bank of India’s proposed digital rupee.

“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at use of cryptos rather than a total ban,” an official in the know of the matter said.

These discussions are at an early stage and no formal resolution has yet been passed.

Sources told ET that the finance ministry was monitoring the growing volume of cryptocurrency trading in India and is talking to stakeholders on potential supervisory risks.