Cryptocurrency Adoption and Regulatory Challenges in India

Abstract

Cryptocurrencies, introduced by Nakamoto (2008), have emerged as transformative financial instruments. In India, retail investors are increasingly drawn to crypto assets, despite persistent regulatory uncertainty (Reserve Bank of India, 2019). Research suggests that perceived high returns (Tapscott & Tapscott, 2016) and technological appeal (Narayanan et al., 2016) drive adoption, while lack of clarity in regulation (OECD, 2020) and low financial literacy (Lusardi & Mitchell, 2014) act as key deterrents. This study examines the influence of demographic factors, awareness, and regulatory perceptions on adoption behavior among 120 Indian retail investors. Using descriptive statistics, chi-square tests, and Pearson correlation, the study finds a significant association between awareness and adoption, with regulatory concerns and fraud fears cited as major barriers. The findings underscore the urgent need for a structured regulatory framework and targeted investor education.