Integrating Cryptocurrencies to Legal and Financial Framework of India

Abstract

As the Cryptocurrency is becoming popular in the world and in India, it is also becoming targets of various illegal activities such as money laundering and cybersecurity breaches. Considering its emergence in India, it is important to examine the issues and scope it entails for the Indian economy. Because of the potential use of cryptocurrencies to hide black money and in terror financing, the government in India is not recognising it as a valid tender. However, the government has not necessarily closed the door on future regulation of cryptocurrencies. Therefore, despite operating in grey area, the sector continues to grow. The paper briefly describes the nuances and the current state of the affairs in relation to the cryptocurrencies across the globe, provides a legal and regulatory perspective of cryptocurrencies in India, discusses the issue of cybersecurity in the digital payment ecosystem, and concludes with a list of challenges and way forward.