ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Regulation of Cryptocurrency

An Indian Perspective

Cryptocurrency is a currency created and held electronically in the virtual world. In the absence of a proper legal framework, cryptocurrencies are unregulated in many countries, including India. This article attempts to delve into the concept of cryptocurrency and the issues and challenges they face. It also discusses the current legal and regulatory framework for cryptocurrencies in India and offer suggestions for their better regulation.

 

In recent times, the focus has shifted from fiat currency to a new-age digital currency termed as cryptocurrency. The volume and use of cryptocurrency trading has exploded, especially during the wake of the pandemic, as there is a growing demand for a digital platform to transact securely, anonymously, and without government interference. This is evident from the fact that the global cryptocurrency market is expected to grow at a compound rate of 32% from 2019 to 2024.1

The term cryptocurrency is sometimes synonymously used with crypto-assets, which are digital assets that use cryptography. There are three main subclasses of crypto-assets: cryptocurrencies, crypto-commodities, and crypto-tokens (Burniske and Tatar 2018). Cryptocurrencies like bitcoin, litecoin, etc, are designed to fulfil the traditional role of real-world currencies on the digital platform and act as a medium of exchange. The computing storage and networking resources which power the blockchain ecosystems are termed as crypto-commodities.

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Published On : 17th Jan, 2024

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