#CryptoRegulation

cryptocurrencies are unregulated in India, historically, the RBI has banned dealing in cryptocurrencies and, therefore, cryptocurrency stakeholders are advocating for regulating the cryptocurrency realm. However, given that currency is an inalienable element of any state and as cryptocurrencies invade this space, regulation of cryptocurrency may be subject to heavy regulations and supervision from various authorities, such as: (1) the RBI, for regulating cryptocurrencies as a legal tender; (2) the Directorate of Enforcement, for banning of use of cryptocurrency in economic offences; (3) the Department of Economic Affairs, for interference of cryptocurrencies in economic policies of state; (4) the Securities and Exchange Board of India (SEBI), for use of cryptocurrencies in security contracts; and (5) India’s tax authorities, for tax implications on trading in cryptocurrencies.