Abstract

With the advancement of financial technology, cryptocurrencies have gained much traction globally. Their largely unregulated and decentralized nature has made them controversial and a topic of hot debate in most countries. Governments and financial institutions across the globe have recognized the significance of the new asset class in the markets and have observed the upsurge in exchanges in mainstream society. Its ever-increasing popularity has pushed governments to deliberate and implement policy decisions for their regulation. Currently, there exists no uniform international law pertaining to the regulation of cryptocurrency despite its cross-border trade. While some countries have affirmed its legality, others have remained silent or have imposed a ban. India has witnessed some interesting developments in its legislative, executive and judicial domains. From the imposition of a ban on services that facilitate the trade of virtual currencies to its subsequent retraction by the judiciary, the Indian spectators are left guessing the government’s next move. While a Draft Bill calling for the ban on cryptocurrency trading sits dormant in the Indian Parliament, crypto users continue to pay a hefty 30% tax on the profits from the sale or exchange of any crypto assets since its imposition in the Union Budget of 2022-2023. The legality of the cryptocurrency itself remains unsettled, and the country awaits a governmental policy decision on the same.