Explained: Why there is a need to regulate crypto-assets in India

A committee headed by Subhash Chandra Garg, economic affairs secretary, is in the process of drafting regulations to govern crypto-assets. Vaibhav Parikh, senior leader, and Jaideep Reddy, leader, at law firm Nishith Desai Associates, explain why there is a need to regulate crypto-assets, not prohibit their use

There is an impression that the RBI has banned Bitcoins. Is this correct?

There is a misunderstanding that crypto-assets like Bitcoins are illegal in India. No doubt, crypto-assets are not ‘legal tender’, but this does not make them illegal. The fact that they are not ‘legal tender’ only means they are not recognised