Cryptocurrencies Emerge From The Fringe

The flex of the cryptocurrency market has recently increased with the US declaring its intention to be the global leader in the digital asset.

- GEETHA RAVICHANDRAN

Meanwhile, the Indian crypto market was valued at around $2.5 billion in 2024 and is expected to grow to $15 billion by 2035.

The RBI has remained a crypto-sceptic and has emphasised its potential to disturb macroeconomic stability. The challenge, therefore, is to adopt cryptocurrencies without undermining sovereign economic stability. This requires agile regulation, as innovation and change underline crypto markets.

The global regulatory landscape is evolving, actively seeking inputs from various stakeholders. The regulations range from bespoke legislation to the modification of existing payment and security laws. In India, a formal discussion paper on digital assets is likely to be out soon. The expectation is that regulation must provide certainty and protection for investors. Besides transparency in dealings by crypto exchanges, fraud detection, compliance with tax laws and plugging leakages in the anti-money laundering law are to be prioritised.