Sampreeth S Basavannour, School of law, Christ University
ABSTRACT
Cryptocurrency, a digital and decentralized form of money, has disrupted traditional financial markets and led to significant changes in the way we understand and interact with financial transactions.It provides a decentralized and secure alternative to existing currencies and pricing systems, marking a paradigmatic alternative in the conventional financial sector.
Its decentralized structure raises questions for established financial institutions and has led to discussions about proposed central bank digital currencies (CBDCs). An in-depth study of the cryptocurrency sector has revealed a revolutionary financial revolution, from their nature to how they operate.
The regulatory issues that India faced in the early days of its rapidly developing financial sector can be seen in the country's experience with cryptocurrency legislation. While some countries adopt cryptocurrencies with regulations that encourage innovation while minimizing risk, others impose bans and restrictions, largely for reasons of stability, financial government, security and illegal activities.
The main challenge lawmakers will face is finding the ideal balance between innovation and regulation, security and freedom, which remains a challenge. It is clear that there is still a long way to go in cryptocurrency regulation. The dynamic and progressive nature of this digital financial landscape requires regulators and governments to adopt flexible and progressive strategies.
Keywords: crypto currency, regulations, finance, government, virtual assets, illegal activities, ban, legislations.
