REGULATING CRYPTO CURRENCY TRANSACTIONS IN THE BANKING AND INSURANCE INDUSTRIES

AUTHOR – HERANG KRISHANA, STUDENT AT ILSR, GLA UNIVERSITY, MATHURA

Best Citation – HERANG KRISHANA, REGULATING CRYPTO CURRENCY TRANSACTIONS IN THE BANKING AND INSURANCE INDUSTRIES, ILE TAXATION LAW AND LEGAL STUDIES (ILE TLLS), 1 (1) of 2023, Pg. 19-27, APIS – 3920 – 0024 | ISBN – 978-81-961120-5-9.

Abstract

This research paper explores the regulatory framework surrounding crypto currency transactions within the banking and insurance industries in India. With the growing popularity and widespread adoption of Crypto-currencies, it is crucial to examine the legal landscape and identify the challenges and opportunities they present within the Indian context. The paper begins by discussing the fundamental concepts of Crypto-currencies, emphasizing their decentralized nature and the underlying technology known as block chain. It then delves into the potential risks associated with crypto currency transactions, including money laundering, terrorist financing, and consumer protection concerns. Drawing upon Indian laws, rules, and regulations, the paper examines the current regulatory framework governing Crypto-currencies in the banking and insurance sectors. It explores the Reserve Bank of India’s stance on virtual currencies and the guidelines issued by the Insurance Regulatory and Development Authority of India regarding the use of Crypto-currencies in insurance transactions. Furthermore, this research paper analyses the comparative regulatory approaches taken by Western jurisdictions, such as the United States and the European Union, shedding light on their experiences and strategies in addressing the challenges posed by Crypto-currencies . By analysing the Indian legal landscape and drawing parallels with Western jurisdictions, this paper aims to propose recommendations for a comprehensive regulatory framework that balances innovation, consumer protection, and financial stability. It emphasizes the need for robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures, enhanced collaboration between regulatory authorities, and the development of standardized guidelines for crypto currency transactions

Keywords: crypto currency, regulation, banking, insurance, Indian perspective.