HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Regulation of Cryptocurrencies in South Asia


Financial market regulation involves state control, which conflicts with the decentralized nature of blockchain technology (DLT). The challenge lies in finding a balance between transaction freedom with state oversight, as currency issuance is a sovereign function.

Current uses of blockchain technology in the cryptocurrency market

  1. Cryptocurrency payments between users, which can be conducted through wallets, cryptocurrency exchanges, and brokers, including operations with stablecoins.
  2. Trading and investing on centralised cryptocurrency exchanges.
  3. Fundraising for projects through Initial Coin Offerings (ICO) and Initial DEX Offerings (IDO).
  4. Trading derivative financial instruments based on cryptocurrency assets.
  5. Operations with Non-Fungible Tokens (NFTs) and the confirmation of ownership of unique digital objects, such as images, videos, audio files, or gaming items.
  6. The use of crypto applications and platforms based on decentralised finance (DeFi).

In March 2020, the Supreme Court of India lifted the ban on cryptocurrencies. Following this, the government introduced the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. This bill, currently under revision, aims to recognise cryptocurrencies as regulated assets under the Securities Exchange Board of India (SEBI).

The current regulatory status remains undefined. On behalf of the Ministry of Finance, the Minister of State for Finance, Shri Pankaj Chaudhary, stated: ‘Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on the evaluation of risks and benefits, and the development of common taxonomy and standards.’

The primary objectives of establishing a favourable legal regime are, on one hand, to ensure the protection of the rights and legitimate interests of investors who use DLT technology for financial transactions and, on the other hand, to safeguard the state against the use of cryptocurrencies in financing terrorism, tax evasion, and other illegal activities. Therefore, the regulator must develop a framework that addresses the following tasks:

  1. Define the legal status of cryptocurrencies, which may include categorisation as securities, commodities, and more.
  2. Establish a licensing mechanism for cryptocurrency exchanges and payment systems that would provide robust protection for investors against fraud.
  3. Implement transparent procedures for customer identification and compliance with anti-money laundering regulations.
  4. Develop a favourable tax regime that is competitive with other jurisdictions, making India attractive for launching startups and crypto projects.

According to Kar Yong Ang, an Octa broker financial market analyst, ‘The most important issue that the regulator needs to consider is the regime for digital assets that include cryptocurrencies. If the tax rates are high (more than 5%), most of the persons performing transactions with cryptocurrencies will continue to remain in the grey zone, which on the one hand will reduce tax revenues, and on the other hand, will increase the risk of scam and fraud for cryptocurrency users.’

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a variety of services already used by clients from 180 countries with more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools. The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities. Octa has won more than 70 awards since its foundation, including the ‘Best Forex Broker 2023’ award from AllForexRating and the ‘Best Mobile Trading Platform 2024’ award from Global Brand Magazine.


RELATED

Forex Vs. Stocks - What are the Differences?

In the Olymp Trade platform, traders can choose Stocks or Forex trading mode, each optimized for their respective trading instruments. The fundamental difference between...

Everything To Know About a Crypto Bear Market

If you have been trading crypto, you certainly have heard the terms “crypto bear market” and “crypto winter.” Ultimately, this is a situation where the market sells off quite drastically...

What Is Crypto Lending and How Does It Work?

Crypto lending allows cryptocurrency owners to lend their coins to borrowers. They will gain some profit as a result of this. It's more like putting money in a savings account...

What Is FUD In Crypto? Why It Can Impact Prices

If you have been around the cryptocurrency market for even a short amount of time, certain words pop up again and again, such as FOMO, FUD, HODL, and more. As of late, the term FUD...

Trading Guide to TSLA: NASDAQ - All You Need to Know About Tesla

Tesla is regarded as one of the most visionary and innovative tech companies of our time. Here’s everything you need to know about TSLA, including company history...

The Dynamics of Commodity Trading: An In-depth Look

From the very clothes on your back to the coffee you sipped this morning, commodities influence our daily lives. This vast market encompasses a wide variety of goods...

How Does Cryptocurrecy Work?

When Bitcoin came along, it introduced a whole new world of digital currencies that are powered by various technologies, such as blockchain and cryptography...

Forex trading sessions

Currencies are available to trade 24/5, anywhere globally, while cryptocurrency is available 24/7. However, there is server maintenance when trading cryptocurrencies...

Is MetaTrader 4 good for Crypto?

MetaTrader 4 is used to trade a variety of financial instruments including some of the world’s most popular cryptocurrencies. In this blog, we’ll look at the benefits of using MT4 for crypto trading...

What is tokenomics? Understanding the token economy

With thousands of cryptocurrencies available, traders are beginning to think to themselves "What makes one crypto more valuable than another?" Tokenomics will help make sense of this.

Libertex: Crypto bears getting ready to hibernate

After a short hiatus, the cryptocurrency market is back in the spotlight once again. Just a matter of weeks ago, there was talk of burst bubbles, lost fortunes and even a long...

Pros and cons of trading Forex with Bitcoin

Cryptocurrencies are gaining popularity again. It's the perfect opportunity to use them for your trading portfolio, especially the ever-popular Bitcoin. Here's a short...

Unlocking Opportunities in Global Commodity Markets with FXTM’s Advanced CFD Trading

Step into the world of global commodities trading with FXTM, where we offer a gateway to diverse investment opportunities through advanced CFD trading. Experience the flexibility and potential of trading...

Salvador Bitcoin Experiment: A brilliant idea or a fiasco

There are so many countries, so many opinions and approaches. Each country has its vision. And it is not always clear why digital assets are welcome in one economy and are considered evil by the other...

Secure your cryptocurrency: Storage options and best practices

Every cryptocurrency owner needs a place to store his assets, and the storage method of choice needs to be as secure as possible. While there are many options available when it comes to storage...

The Best Commodity Trading Tips and Tricks

Commodity trading is where various commodities and their derivatives products are bought and sold. Commodity markets include various raw materials...

ETFs vs Mutual Funds: Similarities, Differences and the Know-Hows

Exchange-traded funds (ETFs) and mutual funds have a lot in common. These two funds both pool investor investments into a combination of securities such as bonds, commodities, and stocks...

What is Bond Market

The bond market, also called the debt market or credit market, is an online marketplace where people trade bonds. These bonds can be issued by governments...

Exploring The Limitations Of Fundamental Analysis: A Comprehensive Perspective

Fundamental analysis is a method used to evaluate securities by examining the underlying factors that influence their intrinsic value. It involves analyzing both qualitative...

Why you need a forex trading plan

A forex trading plan is a comprehensive strategy that outlines the trader’s approach to trading the forex market. It covers all aspects of trading, including the trader’s goals...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.