REGULATION OF CRYPTOCURRENCY IN INDIA

This article tries to analyze the developing regulatory environment for cryptocurrency, considering the conflict between technological advancements and ensuring consumer protection. With the Reserve Bank of India's (hereon RBI) restrictions in 2018 and subsequent Supreme Court intervention in Internet and Mobile Association of India v. Reserve Bank of India (2020) , this article navigates a path of oscillating regulatory stance of India towards digital assets. It analyzes existing frameworks, such as recent taxation policies and regulations, yet emphasizes on the dual imperatives of encouraging blockchain innovation and safeguarding the investors against potential fraud, volatility and illegal actions. It also studies regulatory frameworks in foreign states like European Union, United States and China and suggested a nuanced and prudent framework for Indian governance of proportionality, neutrality of technological advancements and consumer autonomy and empowerment. The article contends that effective regulation of cryptocurrency needs prudent and properly analyzed approaches and methodology including licensing rules, transparency obligations, anti- money laundering regulations and investor protection approaches that allow legitimate and rational innovation while keeping in mind systemic risks and consumer safety.