Ananya Acharya, Hidayatullah National Law University
ABSTRACT
Cryptocurrency is a revolutionary advancement in the world of finance, disrupting conventional legal structures and spurring a variety of regulatory reactions across the globe. This paper examines two approaches to defining the legal status of cryptocurrency: incorporating it into current regulations or acknowledging it as a unique financial asset needing specialized laws. Blockchain, the underlying technology of cryptocurrency, offers transparency and decentralization while also bringing about challenges like the double spending issue and risks related to decentralized finance (DeFi). Legal structures differ greatly depending on the jurisdiction, showcasing varying perspectives on innovation, financial security, and customer safety. Countries such as China demonstrate a careful yet forward-thinking strategy, equally emphasizing the advancement of blockchain technology and strict regulations on cryptocurrencies through laws like the Cryptography Law, along with new rules for cryptocurrency inheritance. At the same time, authorities around the world encounter difficulties in fighting crimes involving cryptocurrency, such as money laundering and ransomwareattacks, because of the technology's anonymous characteristics and international transactions. This article analyzes the changing terrain of cryptocurrency regulation, highlighting the significance of global collaboration and flexible legal structures. It ends by discussing upcoming trends, emphasizing the importance of balanced strategies that promote creativity, protect financial integrity, and tackle new threats in the digital economy.
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