The crypto asset industry has undergone a dynamic and unpredictable evolution in recent years. Although crypto assets have yet to become a dominant force in the global financial system, their increasing prominence is undeniable.
The global nature of crypto assets introduces significant risks due to their unique technological and economic traits. Effective regulation is essential to safeguard investors and build market trust, particularly in rapidly growing markets like India. As one of the leaders in global crypto asset adoption, India faces the challenge of balancing investor protection with the need to encourage innovation in this sector.
India’s approach to regulating crypto assets, known locally as Virtual Digital Assets (VDAs), has evolved. Initially contemplating an outright ban, the Indian government now recognizes the necessity of an international regulatory framework given the global scope of the crypto market. During its G20 presidency, India has taken a proactive role in advocating for a unified global regulatory strategy to address the challenges presented by VDAs across different jurisdictions.
A recent report by the Indian Council for Research on International Economic Relations (ICRIER) underscores the importance of drawing from international regulatory practices. The report advocates for harmonized global regulations to protect consumers while acknowledging the critical role of government oversight. It emphasizes that while industry collaboration is vital for the evolution of the market, it cannot substitute for comprehensive regulatory measures.
Related topics:
