Student at Amity Law School, Noida, India
The Fintech industry is leading this surge at a time when there are technological advancements progressing at a very high rate. From online stock trading platforms and mobile banking to cryptocurrencies, which is without a doubt the most sought-after. Virtual currencies ("VC's") like Bitcoin, Ethereum, and other similar coins have seen a sharp rise in popularity in recent years, both internationally and in India. Cryptocurrencies’ decentralised nature ensures that no single entity, such as a government or central authority, has complete control over the currency. With everything being accessible online, the advent of cryptocurrencies allowed people to purchase, sell, invest, and trade in a type of money that had no physical counterpart. Indians have invested more than USD $1 billion in the cryptocurrency market, despite the fact that the legal status of cryptocurrencies is still a matter of debate. This lack of clarity on the part of the government about where cryptocurrencies stand today and what their future holds has led to investor confusion. A strategically framed legal framework is required for the regulation of virtual currencies both within and outside of the nation, as evidenced by the rising use and interest of these currencies. VCs decentralised and anonymous nature creates issues with rules and regulations. Other threats are being accelerated by cryptocurrencies, like laundering of money, putting in money for terrorist activities, and evasion of tax, which requires immediate attention. The author has attempted to highlight the legal and public awareness issues surrounding cryptocurrencies. This paper also focusses on the jurisprudence aspect of cryptocurrency by majorly focussing on the case law Internet and Mobile Association of India v. Reserve Bank of India. The legal issues and challenges are highlighted in the paper, along with potential solutions, based on the analysis of the current laws.
International Journal of Law Management and Humanities, Volume 6, Issue 1, Page 905 - 921DOI: https://doij.org/10.10000/IJLMH.114140
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