Cryptocurrencies in India could gain legal status

Key points:

• A new report on cryptocurrency regulation has been presented in India by the Gujarat National Law University.
• The study outlines five possible regulatory approaches, ranging from central bank oversight to the creation of a dedicated regulator.

India may be moving closer to establishing formal rules for cryptocurrencies. The discussion was sparked by a report on digital asset regulation presented in New Delhi by Gujarat National Law University. Former Supreme Court judges and legal experts also took part in the event.

The researchers examined different approaches to regulating the crypto market. According to the authors, India needs clearer rules, as millions of citizens already use cryptocurrencies even though the country still lacks a comprehensive legal framework.

The report, titled “Crypto Assets in India: Assessing the Need for Regulation,” was prepared in collaboration with the Society of Indian Law Firms. It was presented at The Lalit hotel in New Delhi.

Why India Needs Clear Rules

In recent years, Indian authorities have already taken several steps. The country introduced taxes on virtual digital assets and anti-money laundering requirements for crypto companies. However, there is still no dedicated law that fully regulates the digital asset market.

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As a result, market participants face ongoing uncertainty and often lack clarity about what regulators expect from them.

Possible Regulatory Models

The researchers proposed five regulatory frameworks that Indian policymakers could consider when developing national rules for the crypto sector.

One option would place oversight under the Securities and Exchange Board of India (SEBI). Another model would assign supervision to the Reserve Bank of India.

The report also discusses a multi-regulator approach, where several financial authorities would coordinate oversight. Another possibility is the creation of a new specialized regulator dedicated specifically to the crypto industry.

Finally, the study suggests a temporary self-regulatory model under government supervision. Similar approaches have already been used in some countries while comprehensive rules are still being developed.

The university also held consultations in Bangalore, Mumbai, and Delhi, bringing together developers, crypto exchange representatives, lawyers, and regulators to discuss the future of crypto policy in India.