GNLU Launches Critical Consultations to Shape India’s Crypto Regulatory Framework

India's crypto crossroads just got a formal guide. Gujarat National Law University (GNLU) has kicked off a landmark consultation process, aiming to draft the rulebook for the nation's digital asset future.

Building the Rulebook from the Ground Up

This isn't about tweaking old laws—it's a foundational effort. GNLU is gathering insights from industry players, legal experts, and academics. The goal? To craft regulations that protect investors without strangling innovation in its crib. Think of it as writing the constitution for a new financial frontier.

Why This Consultation Matters Now

Global crypto regulation is a patchwork, and India's market is too massive to ignore. The government has signaled a move from skepticism to structured oversight. These consultations are the critical first step in translating that intent into actionable law—getting it wrong means either stifling a multi-billion dollar industry or leaving citizens exposed.

The Tightrope Walk of Regulation

The core challenge is balance. How do you prevent fraud and ensure market stability while allowing the technology to evolve? The consultations will grapple with everything from defining what a 'crypto asset' legally is, to setting up licensing regimes for exchanges—essentially deciding who gets to play in the sandbox and what the rules of the game are.

A Signal to the Global Market

For international investors and crypto firms, clear rules from a major economy like India are a green light. It reduces the 'regulatory risk' premium that has kept institutional money on the sidelines. Predictability attracts capital—something even traditional finance occasionally remembers.

The outcome of this process could either unlock India's potential as a crypto hub or add another layer of bureaucracy that achieves little beyond creating compliance jobs—a classic finance sector outcome where the rule-makers often win before the first trade is even placed.

Advisory board consultation: Experts weigh in

The Advisory Board consultation in Gandhinagar featured a distinguished panel of experts, including former Supreme Court Judge Justice M. R. Shah, former Gujarat High Court Judge Justice Ravi Tripathi, former Gujarat Chief Secretary Rajkumar, former Additional Chief Secretary J.P. Gupta, and Keshav Kumar, former Director General of Police and Director of the Anti-Corruption Bureau.

During the advisory discussions, experts from cybersecurity, academia, tech startups, and cyber law came together to look at gaps in India’s crypto rules. The experts said crypto assets need to be defined clearly so that everyone knows what the rules actually cover. 

They also said regulators should work together more, taxes should be simpler, consumers need better protection, and there should be proper ways to sort out disputes and handle issues that involve other countries.

Regional stakeholder consultation in Bengaluru

GNLU also held a consultation in Bengaluru, which has grown into one of the main centers for crypto and blockchain businesses in India. People from exchanges, tech companies, service providers, and other industry participants spoke about what it’s really like on the ground, sharing their day-to-day challenges and experiences.

They talked about the challenges they face day to day and how regulations could be improved to help the industry grow without creating unnecessary hurdles. Their input gave a practical perspective to go along with the policy discussions from Gandhinagar.

Toward a structured crypto framework in India

Crypto use is growing fast in India, and it’s clear that the country needs rules that keep investors SAFE without stopping innovation. The findings from these consultations are expected to guide the final recommendations.

By combining advice from lawyers and policymakers with the real experiences of people working in the industry, GNLU is trying to create a framework that is clear, secure, and practical. The goal is to build rules that help the crypto market grow while keeping it safe and transparent.

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