The Risks and Opportunities in Emerging Market Crypto Regulation
India’s crypto market has become a microcosm of the broader tensions between innovation and regulation in emerging economies. Over the past two years, the country has witnessed a surge in high-profile crypto crimes—from multi-level marketing (MLM) scams to ransomware schemes and exchange hacks—while its judicial system has responded with unprecedented rigor. These developments are reshaping the investment landscape, creating both risks and opportunities for crypto assets.
The Risks: A Landscape of Volatility and Vulnerability
India’s crypto ecosystem has been plagued by systemic vulnerabilities. In 2023, a ₹1,646 crore ($240 million) MLM scam exploited privacy coins and decentralized exchanges (DEXs) to defraud investors,…
