Abstract
This article looks at the application of present Indian payment system policies and regulatory model on virtual-currency in India. In fact, simply banning cryptocurrency in India would not serve the purpose of legislature and Reserve Bank of India (RBI); rather it will boost cryptocurrency frauds in India due to absence of any law. The present article analysis shows that there is an ample scope within the present models and policies with necessary amendments to facilitate the regulation of virtual-currency in India. The analysis also suggests new model regulation on cryptocurrency which shall constitute the basic model regulations in India to govern cryptocurrency technology and products. Author uses the Banking Regulation Act as a model, regulating all types of new fintech products such as cryptocurrency, Bitcoin & business activity, its intermediaries, exchanges, customer protection in robust and transparent fashion in India.
Highlights
The time has come to start thinking on future technological financial products and services that are growing rapidly in recent years
Brokerdealer are holding customer investment to be invested in share market is in the form of Cryptocurrency will requires to following Securities Exchange Board of India (SEBI) Act 1992 & Securities Contracts Regulations (SCRA) 1996
The idea of Cryptocurrency future contract is to provide a derivative to hedge risk for miners who develop gradually other cryptocurrencies. If we consider this form of cryptocurrencies, future contract and trading are similar to the existing Commodity Derivatives Market Regulation of SEBI which focuses on market safety, efficiency, transparency and integrity and reducing cost of transaction, Risk Management System and various intermediaries and their Regulations
Summary
The time has come to start thinking on future technological financial products and services that are growing rapidly in recent years Some of these products and services are Cryptocurrency, virtual money and Bitcoin which are commonly known as electronic version of currency notes and coins. This new financial products and services are posing great challenges such as monetary and financial stability, protection of customers, costs and benefits of allowing these new forms in existing payment system before legislators and regulators. It seems logical before we think of regulating virtual currencies; we must understand what and when to regulate virtual currencies, which we are going to see subsequently in article
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