The Growth of Crypto Currency in India: Its Challenges & Impacts on Legislation


  • Shweta Srivastava Assistant Professor, FoLS, Motherhood University, Roorkee
  • J.S.P. Srivastava Dean, Faculty of Legal Studies, Motherhood University, Roorkee


Digital currencies, Bitcoin, Ethereum, Potential, Scams


In the past few years, more and more people in India have been using and investing in digital
currencies like Bitcoin, Ethereum, and Ripple. The popularity of crypto currency has increased a lot.
But, this growth has also brought some difficulties for the Indian government, especially in terms of
controlling and managing crypto currencies. One big problem is that it's not clear if crypto currencies
are legal in India. The Reserve Bank of India (RBI) has said that investing in crypto-currencies is risky,
but the government has not made any official rules for digital currencies yet. This lack of control and
security has also caused worries about the possibility of illegal activities like hiding money or other
wrong actions. There have been many famous cases of fraud involving digital money in India, which
is causing people to demand more supervision of the industry. Even though there are difficulties,
crypto currency could have a big effect on India's economy. Digital currencies can help more people
become a part of the financial system, especially those who can't use regular banks. They can also
make it easier to send money across borders and decrease the fees of sending money home.
The Indian government is looking for ways to use and benefit from crypto currency while reducing
the risks involved. In 2021, the government made a new law called the Crypto Currency and
Regulation of Official Digital Currency Bill, 2021. This law is all about creating rules for how digital
money can be used and controlled in India. The Indian government is considering a bill that shows
they want to support and understand crypto-currency, while also finding solutions to the problems it
brings. We don't know yet how this new law will affect the growth of crypto-currency in India, but it
will probably influence the future of the industry in the country.

DOI: 10.5281/zenodo.10444887

Author Biographies

Shweta Srivastava, Assistant Professor, FoLS, Motherhood University, Roorkee

Assistant Professor, FoLS, Motherhood University, Roorkee

J.S.P. Srivastava, Dean, Faculty of Legal Studies, Motherhood University, Roorkee

Dean, Faculty of Legal Studies, Motherhood University, Roorkee,


Crypto-currency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or

virtually and uses cryptography to secure transactions,

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The 2019 Bill was drafted and presented for discussion in the Lok Sabha in 2019 in response to the RBI's 2018

ban on crypto-currency trading and the Inter-Ministerial Committee's report, which suggested the need for a

draft bill to ban crypto-currencies in the country and establish an official digital currency. The 2019 Bill

restricted any mining, holding, selling, exchanging, issuance, removal or utilization of cryptographic money in

India and furthermore suspected to make such demonstrations culpable with a fine or detainment of as long as

years, or both. Further, the 2019 Bill expected an individual to proclaim and discard any digital money in

his control, in the span of 90 days from the order of the 2019 Bill.

The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption, China Remains

Active Despite Ban, and Crypto Fundamentals Appear Healthy,

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By Process (Mining, Transaction), By Type, By End-use, By Region, And Segment Forecasts, 2023 – 2030, (last visited June 21,

The Department of Revenue, Government of India, oversees the Financial Intelligence Unit - India, an

organization that gathers financial intelligence regarding crimes under the Prevention of Money Laundering

Act, 2002.

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Block-chain is a digital ledger also called Distributed Ledger Technology (DLT). Which can be used for

recording the transaction of assets in this way transaction and their details can be record in multiple places

at the same time? Whatever transaction occurs on 'block-chain technology', it is visible on every computer

connected in the chain. It means that if transactions happen anywhere in the block-chain, then its record will

be recorded on the entire network.

Decentralized finance, otherwise called DeFi, utilizes cryptographic money and block-chain innovation to

oversee monetary exchanges. By replacing traditional, centralized financial institutions with peer-to-peer

relationships capable of providing a wide range of financial services, including everyday banking, loans and

mortgages, intricate contractual relationships, and asset trading, DeFi seeks to democratize finance.




How to Cite

Shweta Srivastava, & J.S.P. Srivastava. (2023). The Growth of Crypto Currency in India: Its Challenges & Impacts on Legislation. RECENT RESEARCHES IN SOCIAL SCIENCES & HUMANITIES, 10(4), 20–28. Retrieved from