Digital Assets Laws & Regulations

India

Chapters & Answers

12 chapters with 52 sections

1.1

What is the general regulatory environment for digital assets in your jurisdiction?

India has a developing framework for virtual digital assets (VDA), with the government and financial sector regulators adopting a cautious approach. VDAs, including cryptocurrencies, are not recognized as legal tender, but they are subject to specific legal and tax implications. While India does not yet have a comprehensive digital asset regulation, it follows global standards in areas such as anti-money laundering (AML) and counter-terrorist financing (CTF). The Prevention of Money Laundering Act, 2002 and the rules framed thereunder (PMLA) applies to digital asset service providers, requiring compliance with Know-Your-Customer (KYC) norms and transaction monitoring. The government has instead taken steps to promote the development of central bank digital currency (CBDC) through the Digital Rupee initiative by the RBI. Businesses and investors operating in India's digital asset space must navigate existing financial regulations while preparing for upcoming legislative developments.

Contributing Editors

Anu Tiwari

Cyril Amarchand Mangaldas

Anu represents Indian and multinational banking, broker-dealer, exchange, asset management, speciality finance, fintech and information/ emerging technology companies on transactional, enforcement and regulatory matters. His transactional practice focus is on public & private M&A, capital raising, commercial agreements and activism matters. Anu advises financial services clients on matters before the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Ministry of Finance, Enforcement Directorate and appellate tribunals.

Kunal Savani

Cyril Amarchand Mangaldas

Kunal has 22 years of experience advising Indian companies (both listed and unlisted), MNCs and family offices on complex cross-border taxation. He is a qualified chartered accountant in addition to being a lawyer. With deep expertise in various facets of direct & indirect taxation, Kunal demonstrates a deep expertise in areas such as corporate tax, transfer pricing, international tax, and both inbound and outbound M&A transactions. His extensive experience encompasses the design and evaluation of tax-efficient strategies for acquisitions, divestments, mergers, demergers, formation of joint ventures, setting up of global capability centres and corporate reorganizations with an aim to minimize transaction costs and tax exposure in alignment with the commercial objectives of stakeholders. Kunal’s deep knowledge of corporate taxation is demonstrated in his adept handling of foreign direct investment structuring, repatriation strategies, and exit planning. Renowned for his deep knowledge and strategic approach, Kunal is frequently sought after by prestigious print and digital media, leading business news channels, and other influential platforms. His reputation as a thought leader extends beyond media interactions; he is a key participant in numerous high-level discussion forums and frequently engages in assignments where representations are made to the government concerning evolving tax regulations.

Utkarsh Bhatnagar

Cyril Amarchand Mangaldas

Utkarsh is a Partner at our Mumbai office in the FinTech, Financial Services and Technology practice group. He advises Indian and multinational companies across the technology, R&D, emerging technology, banking, payments, FinTech, and information technology sectors on transactional, enforcement, and regulatory matters. Utkarsh has had the privilege of advising on some of the most strategic and first-of-their-kind matters in the fintech and financial services space. He has led complex regulatory advisory and structuring mandates for leading global and Indian players, helping them navigate licensing frameworks and enabling market entry in a highly regulated environment. He has also advised on several large NBFC acquisitions and reorganizations, balancing commercial objectives with regulatory compliance to help these businesses scale effectively. Utkarsh has been closely involved in supporting clients through policy discussions and interactions with regulators on emerging areas such as digital lending and new-age payment models. This includes assisting clients in securing first-of-its-kind approvals in newly created categories, which has allowed them to stay ahead of the curve in a fast-evolving market.

Shatrajit Banerji

Cyril Amarchand Mangaldas

Partner in the Financial Institutions Group and the Disputes Resolution Practice at the Delhi NCR office of Cyril Amarchand Mangaldas. Shatrajit represents Indian and multinational clients, speciality finance, fintech and information / emerging technology companies on enforcement and regulatory matters. He advises and represents clients on matters before various fora including Tribunals, High Courts and the Supreme Court in high stakes commercial disputes and advises financial services clients on matters before the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Ministry of Finance, Enforcement Directorate, Serious Fraud Investigation Office (SFIO). He also advises on various licensing/ transfer of IP/ Technology in M&A transactions/ investment rounds etc.

Bipluv Jhingan

Cyril Amarchand Mangaldas

Principal Associate in the Tax Practice at the Mumbai office of Cyril Amarchand Mangaldas. Bipluv specialises in various aspects of direct tax such as corporate tax, restructuring, and funds.

Aditya Sarkar

Cyril Amarchand Mangaldas

Senior Associate in the Financial Services Regulatory Practice at the Mumbai office of Cyril Amarchand Mangaldas. Aditya advises Indian and multinational clients on regulatory advisory, fintech M&A, data privacy, compliance and licensing in the specialty finance, digital payments, virtual assets, and emerging technology sectors.

Digital Assets Laws & Regulations

Chapters & Answers

Introduction

What is the general regulatory environment for digital assets in your jurisdiction?

Regulatory Framework

Market Access and Licensing

Security and Consumer Protection

Blockchain and Smart Contracts

Cross-Border and International Considerations

Investment and Fundraising

Taxation

Enforcement and Dispute Resolution

Opportunities and Challenges

Emerging Trends

Conclusion