India is right to act on offshore crypto platforms but it must also build a fairer market

The financial services and technology sectors are directly impacted by evolving crypto regulations. A clearer regulatory framework could foster innovation within India's fintech landscape.

• •A Financial Action Task Force (FATF) report supports India’s concerns regarding offshore, non-compliant virtual asset service providers (VASPs).
• •The real risk in crypto is identified as offshore, non-compliant VASPs, not the asset class itself.
• •India is acting on offshore crypto platforms, suggesting a push for a more regulated domestic market.
• •Risk flag: Uncertainty around the final regulatory framework for crypto in India.
• •Risk flag: Potential for continued capital outflow if domestic regulations are perceived as overly restrictive.