ABSTRACT
The regulation of cryptocurrency has become a pivotal aspect of modern financial markets, influencing their structure, stability, and growth. This abstract explores the impact of cryptocurrency regulation on financial markets, focusing on both the challenges and opportunities it presents. Regulatory frameworks aim to mitigate risks associated with cryptocurrencies, such as fraud, money laundering, and market manipulation, thereby enhancing investor protection and market integrity. However, stringent regulations can also stifle innovation and limit the growth potential of the crypto market. The balance between regulation and innovation is crucial, as overly restrictive measures may drive crypto activities to less regulated jurisdictions, while insufficient regulation can lead to financial instability. The impact of these regulations is evident in market volatility, investor confidence, and the integration of cryptocurrencies into traditional financial systems. As countries continue to develop and refine their regulatory approaches, the global financial market must adapt to the evolving landscape of digital assets. This dynamic interplay between regulation and market forces will shape the future of cryptocurrencies and their role in the global economy.
KEYWORDS: Virtual Currencies, RBI(Reserve Bank of India), Financial Market, Market Volatility, KYC(Know Your Customer), Anti-Money Laundering (AML), Economic Impact, Bitcoin, Cryptocurrency