A Watchdog For ‘Born Free’

Regulation of cryptocurrency in India depends primarily on its classification under a particular asset class. The narrative so far suggests reluctance from central regulatory bodies to recognise it as a legal tender. As on date, it is not recognised as a sovereign-backed currency just as in many jurisdictions across the globe. There is no ban from buying cryptocurrency through an exchange in India at the moment and private bourses function in an unregulated environment in the country facilitating trades in cryptocurrencies. These exchanges are expected to comply with the RBI Master Direction on KYC Norms to ensure a level of authenticity. Being a tech-based product, the safety of trades also depends upon the IT infrastructure and security protocols adopted by the exchanges. To ensure trust in the system, the dealers can comply with the existing security measures as mandated for banks or...