How political discourse influences Virtual Digital Assets regulations
VDA regulations in India
VDA encompasses various kinds of digital assets. In India, VDA was formally recognised in March 2023, after the Ministry of Finance brought VDA under the Prevention of Money Laundering Act (PMLA). It mandates that all the VDA service providers operating in India should register with the Financial Intelligence Unit-India (FIU-IND) to combat money laundering and terrorist financing.
In contrast, the regulatory framework in the US is very different. However, there is no comprehensive federal regulation specific to VDA, but various agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued guidelines that treat VDA as either securities or commodities based on their usage and characteristics.
Political Discourse and Its Influence
Political discourse significantly influences how regulations are formulated and implemented. In India, the growing popularity of VDA has sparked debates about financial innovation versus consumer protection. Political discourse often leads to legislative action that directly affects VDA regulations. For instance, as public interest in VDA surged, political leaders began advocating for comprehensive regulations to
