IndiaTech Dialogues Panel Calls for Urgent Crypto Regulation to Protect Investors and Ensure Accountability: As India’s Virtual Digital Assets (VDA) ecosystem reaches a critical juncture, concerns around investor protection, regulatory clarity, and accountability are surfacing with increasing urgency.
To advance this conversation, IndiaTech.org, an industry association representing India’s technology startups, unicorns, and investors, hosted the latest edition of its IndiaTech Dialogues – Governance & Safeguards Series, with a focused panel discussion on ‘Virtual Digital Assets: Regulations, Responsibility, and the Road Ahead’.
The session brought together prominent voices from the legal, investment, and digital finance sectors. The panel comprised of distinguished speakers, namely, Ms. Rashmi Deshpande, Founder, Fountainhead Legal; Mr. Chirayu Bagree, Technology Lawyer and VDA Investor; Mr. Sanjay Saxena, Digital Payments Expert and Mr. Rameesh Kailasam, CEO & President of IndiaTech.org, who moderated the session.
The panel engaged in a deep discussion on the ongoing WazirX case, highlighting the jurisdictional complexities that have emerged due to the exchange’s corporate structure. The discussion brought to light the growing concerns of Indian investors who traded on WazirX—an exchange with its principal operations and user base in India—but now face significant hurdles in participating in legal proceedings taking place in Singapore.
Panellists, including several impacted users, underscored the challenges arising from the fact that WazirX’s parent entity, Zettai Pte Ltd, is incorporated in Singapore. As a result, key legal proceedings such as moratoriums and restructuring plans are being adjudicated in Singapore courts, leaving Indian retail and small-scale traders without adequate domestic recourse.
The 2024 cyberattack on the exchange further intensified investor concerns, with many calling for a domestic resolution mechanism. Several users advocated for the initiation of an NCLT-led dissolution process in India to ensure that Indian stakeholders can be meaningfully represented and protected under Indian legal frameworks.
Highlighting the severity of the situation, Mr. Sanjay Saxena, Digital Payments and Web3 Expert remarked, “The current investor situation exposes serious regulatory and jurisdictional challenges in the crypto sector. Without transparent oversight and a third-party audit of crypto holdings, user trust is undermined refunds in fiat currency fail to respect investors’ rights to digital assets. Given the management and regulatory gaps, seeking resolution through the NCLT’s formal dissolution process is both appropriate and necessary. An NCLT-led approach can establish structured, legally binding remedies that address jurisdictional ambiguities while protecting investors.”
Ms. Rashmi Deshpande, Founder, Fountainhead Legal, added, “The absence of enforceable regulation in India has left users vulnerable, especially when assets are transferred offshore without recourse. There’s an urgent need for frameworks that mandate solvency norms, data disclosures, and legal remedies within the country. Operators must be held accountable under domestic law. Without this, investor interests will continue to be compromised.”
Mr. Rameesh Kailasam, CEO & President of IndiaTech.org said, “In a world where assets are borderless and transactions can occur across multiple jurisdictions, investors should know what their rights are and how their assets are protected. It is critical to enforce laws that apply in case of disputes, hacks, bankruptcies and insolvencies. India needs to step in to enforce a mechanism for handling such in the larger interest of investor protection.”
Mr. Chirayu Bagree, Technology Lawyer and VDA Investor, said, “We are currently operating in a regulatory vacuum. The lack of a unified and transparent framework leaves both investors and exchanges exposed to uncertainty. There’s an urgent need for India to introduce a crypto-specific regulatory body, one that is recognised globally and rooted in investor protection. Regulatory clarity must go hand in hand with legal recourse and timely redressal. Above all, we need continuous dialogue between policymakers, regulators, and stakeholders to shape a framework that works for India.”
IndiaTech Dialogues is a flagship event bringing together policymakers, industry leaders, and academic experts to collaborate on technology policy that aligns with India’s evolving digital landscape.
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IndiaTech.org, registered as Technology Services Industry Association (TSIA), represents Indian startups and investors in the technology space. We envision building a strong and vibrant home-grown internet ecosystem through a level playing field for Indian entrepreneurs.
We engage in policy advocacy, policy research, and facilitating industry collaboration to promote local entrepreneurship.
