Virtual digital assets: it’s time for India to get its regulatory act together—investors need protection
India's rapidly expanding virtual digital asset (VDA) ecosystem, with over 100 million users, faces significant investor protection issues due to inadequate, ad hoc regulation. Despite a tax and AML framework, substantive oversight for fraud minimization, grievance redressal, and platform governance is missing. Recent security breaches and fraud highlight retail users' vulnerability. The authors advocate for immediate industry-led measures like travel rules, blockchain analytics, and clear documentation, moving towards formalized regulatory adoption. They urge the government to standardize VDA enforcement, define legal status, establish an ombudsman, and enhance coordination. A balanced approach fostering innovation while safeguarding financial integrity is crucial for India's VDA policy.
LiveMint · Shatrajit Banerji, Hamraj Singh · Jun 17, 2026 at 10:30 AM