India’s digital economy is currently at a juncture where crypto assets have become a huge market without thorough legal support. The new groundbreaking report announced by Gujarat National Law University published in collaboration with the Society of Indian Law Firms (SILF) encourages the policymakers to move beyond piecemeal measures toward a dedicated framework that safeguards investors while nurturing innovation.
What key insights does the Gujarat National Law University report provide?
The Gujarat National Law University has produced a detailed analysis titled “Crypto-Assets in India: Assessing the Case for Regulation,” launched at The Lalit in New Delhi.
The study examines how existing fiscal steps such as virtual digital asset taxation and anti-money laundering rules for intermediaries fall short of addressing the full spectrum of risks and opportunities. It emphasizes the fact that the lack of a clear statutory regime means that India will fall behind in the global Web3 race even as millions of users and a lively developer group are in place.
Why is regulatory clarity essential?
The Gujarat National Law University claims that the existing regulatory uncertainty will deter capital inflow and blockchain innovation will be choked. According to the report, almost 12 crore Indians already have crypto assets, and it is impossible to implement bans on their possession in a globalized digital environment. Having a consistent policy is therefore not a choice but a sheer necessity and must be implemented to ensure financial stability and instill confidence in investors in this fast changing sector.
What models for crypto oversight does Gujarat National Law University propose?
The Gujarat National Law University report proposes five feasible regulatory alternatives, which include:
- SEBI-led model: Crypto is treated as financial or investment assets and regulated under SEBI as securities.
- RBI-led model: Crypto becomes a financial or monetary asset and is governed by the Reserve Bank of India primarily.
- Multi-regulator model: Crypto has different regulators who look after different parts. Examples: RBI regarding payments, SEBI regarding investments and other compliance agencies for other operation
- New dedicated regulator: India establishes a new autonomous regulator for crypto and digital assets.
- Self-regulation with government oversight: Crypto industry bodies manage rules and standards, while the government supervises and sets basic guidelines until a full system is built.
What was the response of eminent jurists to Gujarat National Law University recommendations?
The Gujarat National Law University event featured powerful endorsements from top judicial voices. Justice Hima Kohli highlighted how technology outpaces legislation and called for a balanced framework that protects stability while encouraging innovation.
Justice M.R. Shah pointed out that taxation was inadequate and comprehensive regulation was very much needed. Justice Ravi Tripathi applauded institutions of learning to fill in gaps in the research, and Professor (Dr.) S. Shanthakumar, the Director of the Gujarat National Law University, did emphasize how the pragmatic recommendations of the report were influenced by the consultation of the stakeholder across Bengaluru, Mumbai and Delhi.
Conclusion
The timely intervention by the Gujarat National Law University serves as a blueprint for responsible crypto regulation in India. By translating classroom discussions and nationwide consultations into actionable policy options, the report underscores academia’s vital role in shaping the nation’s digital future.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Frequently Asked Questions
Is crypto legal in India?
Cryptocurrency is legal but unregulated in India, meaning you can buy, sell, and hold crypto, but it is not recognized as legal tender.
How is crypto taxed in India?
In India, income from transferring Virtual Digital Assets (VDAs) like crypto and NFTs is taxed at a flat 30% (plus 4% cess), regardless of holding period or income slab. A 1% Tax Deducted at Source (TDS) applies to most transactions, and no deductions, losses, or set-offs against other income are allowed.
Which is the best crypto exchange in India?
SunCrypto is the best crypto exchange in India.
