The future of crypto-financing in India
We need a regulatory sandbox approach to develop laws that achieve synergy between new technology, investor protection and effective regulatory oversight
As regulators around the world continue to struggle to formulate an appropriate regulatory framework for cryptocurrencies such as bitcoins and ethereum, a new avatar of blockchain-based financial products—cryptocurrency/crypto-token powered initial coin offerings (ICO)—is gaining popularity as a viable alternative to more traditional means of raising capital. The emergence of a new technology-based means of raising capital will need to be properly regulated in order to streamline investment and ensure adequate investor-protection safeguards. The question that needs to be debated is: Could India look towards a “technological revolution" in raising finance through ICOs?