Cryptocurrency Regulation: Analysing Legal Implications and Ethical Considerations
Divyansh Rai1 , Amitabh Kumar Saxena2
1Student, National Law Institute University, Bhopal, India; 2Student, National Law Institute University, Bhopal, India.
10.46679/9789349926141ch10
This chapter is a part of: Law and Economics in India: Market Governance, Digital Change, and Inclusive Growth from India
ISBN (Ebook): 978-93-49926-14-1
ISBN (Hardcover Print): 978-93-49926-73-8
ISBN (Softcover Print): 978-93-49926-54-7
© CSMFL Publications & its authors.
Published: April 15, 2026
Abstract
This research paper critically examines the growing influence of cryptocurrency on global financial systems, emphasizing their economic, regulatory and policy implications. Cryptocurrencies since the inception of bitcoins in 2008, have an emerged as a novel, digital form of currency, independent of traditional financial institution and government control. While proponents highlight their efficiency, security and potential to revolutionize electronic payment system, critics raise concerns regarding their volatility, limited use of money and potential misuse of illicit. Dust study explorers how cryptocurrencies perform fundamental monetary functions-serving as a medium of exchange, unit of account and store of value and evaluates their practical effectiveness compared to conventional currencies. The paper also delves into. The challenges were by the decentralization and pseudonymous nature of these systems, including regulatory inadequacies, consumer protection issues and risk to monetary policy transmission. Through a comparative analysis of regulatory framework across jurisdictions, the paper identifies common challenges such as investors protection, taxation, and enforcement gaps. The research paper further considers the potential role of central bank, digital currencies as a regulated response. Concluding with policy recommendations, the study seeks to promote a balance approach that supports, logical innovation, while ensuring robust, financial oversight and consumer safeguards.
Keywords: Cryptocurrency, Financial Regulation, Monetary Policy, Blockchain Technology, Consumer Protection, Central Bank Digital Currency (CBDC).
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