REGULATING THE UNREGULATED: A COMPARATIVE LEGAL ANALYSIS OF CRYPTOCURRENCY FRAMEWORKS IN INDIA, THE EUROPEAN UNION, AND THE UNITED STATES
AUTHOR – VIKAS MISHRA, STUDENT AT CHRIST (DEEMED TO BE UNIVERSITY), PUNE LAVASA
BEST CITATION – VIKAS MISHRA, REGULATING THE UNREGULATED: A COMPARATIVE LEGAL ANALYSIS OF CRYPTOCURRENCY FRAMEWORKS IN INDIA, THE EUROPEAN UNION, AND THE UNITED STATES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (8) OF 2026, PG. 375-389, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I837
ABSTRACT
The legal and regulatory issues pertaining to cryptocurrencies in the US, EU, and India are compared in this essay. The analysis is set against the backdrop of the WazirX hacking incident in 2024, which revealed serious weaknesses in India’s virtual digital asset regulations. The lack of comprehensive regulation has led to uncertainties over ownership rights, investor protection, regulatory monitoring, and responsibility in cases of financial loss, despite the growing acceptance and taxation of cryptocurrencies in India. Currently, Virtual Digital Assets (VDAs) in India are subject to a 30% tax and a 1% Tax Deducted at Source (TDS), but they are not officially recognised as property or legal tender under what academics refer to as a “taxed but unregulated” framework.
The study also looks at the different regulatory strategies used by the US and the EU. While the United States still uses a disjointed agency-driven paradigm with overlapping jurisdiction between the SEC and CFTC, the European Union’s Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive legislative framework for crypto-assets. However, recent events in both countries show efforts to improve supervision and harmonise regulations. Through this comparative analysis, the report makes the case that cryptocurrency regulation around the world is still in its infancy, with each country facing unique institutional and legal obstacles. It ends by outlining important lessons that India can learn from the US and EU frameworks while creating its own cogent and well-balanced cryptocurrency regulatory system.
Keywords: Cryptocurrency Regulation, Virtual Digital Assets, MiCA, SEC, CFTC, RBI, Property Law, Tax, AML, Blockchain, Legal Frameworks, Comparative Law