Technology, Law, and Crypto

By May 11, 2021May 20th, 20212 minute read

CNBC-TV18 in conversation with Jaideep Reddy

While just 1% of the global population holds Crypto, significant Crypto assets already have a global footprint. If the Crypto market is adopted on a large scale, countries across the sphere will have to consider various regulations and concepts relating to capital control, supply of money, interest rate benchmarks, and much more. In addition to this, legal aspects of anti-money laundering, taxation, and financial investigations will need attention. 

These technical questions around Crypto needed answers, and that’s why, in episode four of ‘Digital Assets Of The Future – Crypto’, our speaker Jaideep Reddy has placed his views. Being a Technology lawyer, regulation is his forte, and his answers are bang on!

In this episode, you can get answers to questions like:

  • How is the Crypto regulation in India placed?
  • What form and shape will the Crypto regulation take in India during the coming times? How are lawmakers and regulators approaching the way forward?
  • What regulatory mechanism is available for investors, mushrooming startups, and exchanges currently? How is the gap between financial literacy and lack of redressal bridged?
  • While India is waiting for its regulations around the Crypto market, what are the global learnings we already have?
  • How can various stakeholders like domestic players, academicians, international experts, economic technologists contribute to bringing a balanced outcome?
  • How safe and regulated is the cross-border movement of Crypto?
  • How are Crypto transactions taxed in India? Does the Income Tax department consider declarations relating to Crypto transactions in the Income Tax Returns (ITR) filed?
  • Currently, what are the legal boundaries set for blockchain technology?

With this interview, you will definitely understand that though there are no defined regulations for the Crypto market in India yet, there is already a protective mechanism in place. As of now, we do have a mixture of laws that protect consumers (investors, we could say) to some extent. For example, we have laws like the Consumer Protection Act, Indian Penal Code, State laws on deposits, etc., which protect consumers from wrongful actions. There are multiple instances where scams were attempted, but the law breakers were eventually prosecuted under the existing laws. 

On the positive side, Crypto exchanges are making genuine efforts to educate consumers about the risk element involved so that everyone can make an informed decision based on their financial acumen and risk appetite.

However, with these supporting legislations, a structured regulatory framework is looked forward to. Clarity on FEMA, anti-profiteering, GST rules will also be needed as this is a grey area as of now. 

It is also important to understand that if holding Crypto assets is disallowed, several blockchain implementations will and can not work. Watch on to understand all of this better!

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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