India Weighs Five Models for Crypto Regulation: Report

• Gujarat National Law University report highlights lack of a dedicated crypto law despite taxation and AML rules in India.

• Study proposes five regulatory models including SEBI oversight, RBI control, multi-regulator system, or a new authority.

• Nearly 12 crore Indians use crypto, increasing pressure on policymakers to establish a clear legal framework.

India may move closer to formal crypto regulation after Gujarat National Law University released a policy report in New Delhi. The study, launched Tuesday with former Supreme Court judges and legal experts, evaluates regulatory options for digital assets. Researchers argue that India must clarify rules as millions already engage with crypto without a comprehensive legal framework.

Report Highlights Regulatory Gap

Gujarat National Law University prepared the report titled “Crypto-Assets in India: Assessing the Case for Regulation.” The university worked with the Society of Indian Law Firms on the research project.

The launch event took place at The Lalit hotel in New Delhi. Former judges from the Supreme Court of India and the Gujarat High Court attended. The report examines how different countries regulate crypto assets. Researchers studied global policy approaches and compared them with India’s current framework.

India has introduced several measures in recent years. These include taxation on virtual digital assets and anti-money laundering rules for crypto companies. However, the report notes that India still lacks a dedicated law for digital assets. As a result, market participants face uncertainty around regulatory expectations.

Five Models Proposed for Policymakers

The study outlines five regulatory models that Indian authorities could consider when designing a national framework. One option would place oversight under the Securities and Exchange Board of India. Another model suggests regulation led by the Reserve Bank of India.

The report also discusses a multi-regulator approach involving coordination between financial authorities. Additionally, policymakers could create a new dedicated regulator for the sector. Finally, the report explores temporary self-regulation under government supervision. Researchers said such models appear in other jurisdictions while rules develop.

Growing Participation Drives Policy Discussion

Prof. S. Shanthakumar, director of Gujarat National Law University, said the project began as a classroom discussion. However, it expanded into a national research initiative. He noted that nearly 12 crore Indians already engage with crypto assets. This participation exists despite the absence of a complete regulatory framework.

The university organized consultations in Bengaluru, Mumbai, and Delhi. Developers, exchanges, regulators, and legal experts joined those discussions. Justice Hima Kohli said technology often evolves faster than legislation. Justice M. R. Shah also noted that taxation marked only an early step toward broader oversight.