The new US administration has firmly adopted crypto assets, demonstrating the permanence of global finance. Trump’s reelection injected new optimism into the market, with Bitcoin surges past $100,000. Countries like Vietnam are seeking clarity of rapid regulation, and while the EU’s MICA framework sets global standards through the “Brussels Effect,” India is on the sidelines and is still waiting for a paper to debate. As major economies shape the future of digital assets, problems remain. Will India seize the moment when it falls behind in the crypto revolution or is there a risk?
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Code stories are modern epics. It began in 2008 with the publication of a white paper by Nakamoto at, an individual or group that remains shrouded in mystery. Bitcoin has emerged as a digital counterpoint for traditional finance. This is a decentralized response to the global financial crisis that reveals deep flaws in the banking system. In the early days, like the first Model T-Ford, Bitcoin was curiosity and understood only by a niche group of engineers and libertarians. Today, just a decade and a half later, Crypto is a force to consider, challenging financial norms and attracting global attention.
But the journey is not smooth. The wild price shaking, dramatic collapses like FTX fiasco and regulations crackdowns frequently cut off the rise in codes. However, the underlying technology, blockchain, has proven its resilience, evolving from a niche digital currency infrastructure to a conversion tool that drives applications from supply chain management to distributed finance (DEFI). India has witnessed a surge in the adoption of crypto, driven by its vast young population and a strong digital economy. However, regulations uncertainty continues to loom large.
The Reserve Bank of India (RBI) has consistently raised concerns about the possibility that it could destroy monetary policy, promote illegal transactions and threaten fiscal stability. This skepticism has been translated into careful policy measures including high taxation (30% tax on cryptocurrency profit), withholding tax credits and compliance obligations. These regulations create an environment of uncertainty and make India an unattractive destination for blockchain entrepreneurs and investors.
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As the global economy moves to a more clear regulatory framework, India faces important decisions. Should this innovation be accepted in clearly defined policies or should we impose restrictive measures that risk promoting talent and capital elsewhere? A balanced approach – it could allow crypto assets to function within a regulated framework and promote India’s own Central Bank Digital Currency (CBDC), but could position the country as a leader in the digital financial revolution rather than a passive observer.
Looking beyond India, a global regulatory approach offers valuable insights. El Salvador made the headline in 2021 as it became the first country to adopt Bitcoin as its fiat currency. The experiment faces criticism of price volatility and limited public adoption, but highlights the potential to promote Crypto’s financial inclusion, particularly in areas where traditional banking infrastructure is weak.
This contrasts with Switzerland, a country famous for its financial insights. Switzerland has embraced crypto in a well-defined regulatory framework, promoting blockchain innovation while ensuring investors’ protection. Zug’s Swiss Crypto Valley has become a hub for blockchain startups, showing that regulations don’t need to curb growth, but they can actually enable it. Similarly, the UK Financial Conduct Authority (FCA) is actively engaged in discussions to balance consumer protection and technological advances.
The changing attitude of the United States is also worth noting. Initially, it was a wave between regulatory crackdowns and innovation-friendly policies, but recent trends have leaned towards promoting a stable environment for the crypto business. Clearer regulations on stubcoins, greater institutional involvement and reduced regulatory ambiguity have encouraged investment. If the US continues this path, it will be able to attract important global capital in the crypto space, putting India in a position to determine whether there is a risk of defeat in a prosperous sector.
India has historically been a cautious but calculated adoption of new financial technology. The Unified Payments Interface (UPI) is a prime example of how countries have successfully made digital payments and created a seamless, scalable, and globally recognized system. A similar approach can be taken with crypto assets. Both complete rejection and unregulated adoption are structured frameworks that promote responsible growth.
To achieve this, India can take decisive steps:
• Regulation Clarity: Comprehensive Cryptographic Regulation Bills should distinguish crypto assets in use cases
Investor Protection: Establishing mechanisms for dispute resolution, fraud prevention and risk disclosure ensures that retail investors are protected from bad actors
•Stablecoin and CBDC Integration: India’s Digital Rupee Initiative (CBDC) can coexist with crypto assets if there are clear regulatory distinctions and interoperability guidelines.
•Tax reform: The current high tax system is pushing businesses up offshore. A more balanced tax structure can promote domestic innovation while ensuring government revenues
•Public and private collaboration: Engagement with industry leaders, blockchain startups, and international regulatory bodies helps to develop policies that promote innovation while reducing risk.
Of course, concerns raised by agencies such as the International Monetary Fund (IMF) and the Financial Stability Committee (FSB) concern crypto volatility, and systemic risk is effective. However, history is full of examples of innovative technology. If concerns about security, privacy and misinformation are rampant, consider an early internet day. However, through regulation and innovation, the Internet has changed global communication, commerce and culture.
The code story is still written. As we navigate that evolution, we must avoid the fear-driven reactionary policy traps. The fiscal future is unfolding and India must decide whether to lead behind or be behind.
The author is a technology lawyer
