India can achieve responsible cryptoasset development with self-regulation

economictimes.indiatimes.com:

crypto asset industry in recent years has been a dynamic and unpredictable journey. While cryptoassets do not yet form a major part of the global financial system, that too is beginning to change and their presence is now indisputable.

However, the borderless nature of crypto assets poses various risks to the global economy due to their unique technological and economic characteristics. Effective regulation in the area of investor protection is crucial for building trust in markets like India, which is at the forefront of global cryptoasset adoption. Similar to other G20 nations, India must balance the need to protect investors with the desire to foster innovation in this rapidly evolving sector.

The Indian government has been navigating the complexities of regulating crypto assets, or Virtual Digital Assets (VDAs) as they are called in India. Initially considering an outright ban, India has since acknowledged the global nature of the crypto asset market and the necessity for a coordinated international response. During its G20 presidency, India has assumed a leadership role in promoting a collaborative global regulatory framework to tackle the cross-jurisdictional challenges posed by VDAs.

A recent paper by the Indian