Regulatory Challenges in Cryptocurrency and Blockchain Adoption

  • Authors

    • Narendra Karmarkar Mathematician and Computer Scientist, Tata Institute of Fundamental Research, India. Author

    DOI:

    https://doi.org/10.67228/3071642X/IJCFDE-2024PII6C9G

    Published 11-05-2024

  • Blockchain, Cryptocurrency, Regulatory Framework, Digital Assets, Decentralized Finance (DeFi), Financial Regulation, Anti-Money Laundering (AML), Know Your Customer (KYC), Data Privacy, Cybersecurity

    Issue

    Vol. 7 No. 2 (2024)

    Section

    Articles

    How to Cite

    Karmarkar, N. (2024). Regulatory Challenges in Cryptocurrency and Blockchain Adoption. International Journal of Commerce, Finance and Digital Economy, 7(2), 01-15. https://doi.org/10.67228/3071642X/IJCFDE-2024PII6C9G

  • Abstract

    Cryptocurrency and blockchain technologies have emerged as transformative innovations capable of reshaping financial systems, digital commerce, governance, and decentralized applications. Blockchain provides a secure, transparent, and immutable distributed ledger, while cryptocurrencies facilitate peer-to-peer transactions without relying on centralized financial intermediaries. Despite their growing adoption across industries such as banking, healthcare, supply chain management, insurance, and government services, significant regulatory challenges continue to impede widespread implementation. Governments and regulatory authorities worldwide face the complex task of balancing technological innovation with consumer protection, financial stability, anti-money laundering (AML) compliance, taxation, cybersecurity, and data privacy. The absence of globally harmonized regulations has created legal uncertainties, operational risks, and compliance burdens for blockchain developers, cryptocurrency exchanges, investors, and enterprises. Moreover, emerging technologies including decentralized finance (DeFi), stablecoins, non-fungible tokens (NFTs), and central bank digital currencies (CBDCs) introduce additional governance complexities that require adaptive regulatory frameworks. This paper presents a comprehensive review of the regulatory landscape governing cryptocurrency and blockchain adoption by examining existing legal frameworks, policy initiatives, compliance mechanisms, and international regulatory approaches. The study further identifies critical barriers, evaluates current governance models, and discusses future regulatory directions that promote innovation while ensuring transparency, accountability, security, and sustainable digital economic growth.

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