International Journal of Social Science Research (IJSSR)

PROTECTING POCKETS IN THE DIGITAL AGE: CRYPTOCURRENCY AND CONSUMER LAWS IN INDIA

The anonymity of cryptocurrency transactions poses substantial obstacles to protecting consumer rights, particularly by hindering tracking and dispute resolution, thereby making it challenging to safeguard consumers. This article examines India's legal framework for protecting consumers engaging in cryptocurrency transactions. It highlights the multifaceted challenges consumers face, including fraud, hacking, phishing, and market manipulation, primarily due to the anonymous nature of cryptocurrency transactions and the inherent lack of robust regulation. Comparing India's approach with that of the US, EU, and Japan, it identifies noticeable gaps in current regulations and subsequently proposes specific, actionable recommendations for improvement. The article emphasises the imperative need for consumer education and awareness, as well as for international cooperation among policymakers, industry stakeholders, and regulators to create a safer, more secure cryptocurrency environment. By analyzing consumer protection laws in depth and proposing amendments, it aims to balance transaction security effectively with investor protection, ultimately promoting a more reliable cryptocurrency ecosystem in India while also suggesting practical implementation strategies for regulators and fostering transparency in decentralized finance (DeFi) platforms to enhance overall market integrity. It further outlines specific policy frameworks that can be adopted to mitigate risks associated with anonymity, alongside actionable steps for enhancing dispute-resolution mechanisms and ensuring continual compliance with evolving global standards in digital asset regulation. KEYWORDS:- cryptocurrency transactions, consumer rights, legal framework, consumer education, transaction security