LEGAL ASPECTS OF BLOCKCHAIN TECHNOLOGY IN INDIA: TAXED AND TRACKED, BUT NOT YET REGULATED

In this blog, we start with the case of an investor in Chennai whose cryptocurrency assets were immobilised following a major hacking incident at the cryptocurrency exchange platform, thus giving rise to questions on the resiliency of ownership in the case of digital currencies. In order to clarify the above-mentioned topic, the blog studies the Indian legal framework for taxation, anti-money-laundering, and electronic contracts. In this regard, the approaches taken by the Madras High Court on the issue of ownership will be examined alongside the Digital Personal Data Protection Act, 2023. The paper concludes with deliberation on the challenges of regulating a contested asset class.