Banking Law Journal: The future of Cryptocurrency regulation in India

This article identifies the compatibility of cryptocurrency with the extant Indian legal regime and describes the recent changes in the legal realm and the currency market. The article also will suggest possible cryptocurrency regulations designed to shield India from the effects of illegal trade in cryptocurrency while harnessing its potential.

The applications of blockchain technology are almost endless. Among smart contracts, tax compliance, weapons tracking, and food safety, to name a few, cryptocurrency (“crypto(s)”) has been the application which has taken the world by storm. It is completely encrypted (therefore anonymous) and uses an encrypted peer-to-peer encrypted network to generate the digital currency and facilitate its use. Unlike fiat currency, it is not backed by a sovereign. The users believe it has value, therefore it does.

The nascent yet lucrative crypto market in India came to a grinding halt after the ban. Some reports indicated crypto exchanges in India were operating at huge margins of about 20 percent before the ban.