Gujarat National Law University Report Urges Clear Crypto Regulation in India

• The report says that around 12 crore Indians are using cryptocurrencies, despite the absence of crypto regulation.
• The report says a balanced crypto regulatory framework could strengthen consumer protection.

A recent project research from Gujarat National Law University advises India to create a clear crypto-asset regulatory framework, proposes a systematic framework for regulation, and provides a thorough analysis of India’s actual stance on crypto-assets. 

The project report, titled “Crypto-Assets in India: Assessing the Case for Regulation.” Which was prepared in association with the Society of Indian Law Firms. Meanwhile, the Senior judges, prominent lawyers, policy experts, and leaders of the digital asset sector convened at the launch event to discuss the future direction of crypto regulation in India.

Rising Crypto Adoption in India

The report highlights the extent of cryptocurrency acceptance in India, according to Prof. S. Shanthakumar, Director of Gujarat National Law University, nearly 12 crore Indians are already using crypto assets despite the absence of a comprehensive regulatory framework. He added, “The report ultimately presents five possible regulatory models, leaving policymakers with practical options to consider while shaping India’s approach to crypto regulation.”

Many major economies have implemented explicit crypto-asset laws informed by comparative regulatory models and global policy trends. India established measures and extended anti-money laundering obligations to crypto, but its lack of a clear, comprehensive crypto framework has affected capital flows, industry development, and innovation, as per the report. 

Report Calls for Balanced Crypto Regulation

Meanwhile, Kalyanjit Hatibaruah, Web3 Technology Management Consultant, shared an AI video on LinkedIn that summarized the report. Which pointed out that the report concludes that since the crypto industry combines a variety of domains, including markets and payments, it cannot be regulated by a single body. Following consultations with senior officials and authorities, the report suggests a multi-agency regulatory model.

The report finally calls for a calibrated regulatory approach that includes institutional control and cooperation between different authorities, because it says that could improve consumer protection, address issues with illicit finance stability, and promote the overall growth of blockchain-based innovation.

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