INDIA Law and Practice Contributed by: Shivalik Chandan, Hardik Choudhary, Dhruv Singh and Arjun Khurana, G&W Legal
• grievance redressal mechanisms – estab - lishing systems prescribed under the law to address consumer complaints. Additionally, companies should ensure fair trade practices and adopt industry best practices, such as: • easy access to contact information – compa - nies should provide easily accessible custom - er care support details on their websites; • robust customer support – companies should offer multiple channels for customer interac - tion, such as chatbots, emails and helplines; • staff training – companies should train their staff on consumer rights, data protection, dispute resolution, and relevant laws and mechanisms; • time-bound dispute resolution – companies should adopt measures to resolve disputes promptly and, where possible, communicate the resolution timeline to consumers; and • online dispute resolution (ODR) mechanisms – these can help both companies and con - sumers save time and resources, and can be used for cross-border e-commerce disputes as well. 1.5 The Role of Blockchain in the Digital Economy Impact on the TMT Sector The integration of blockchain technology has enhanced transparency, security and efficiency in digital transactions and services. The Ministry of Electronics and Information Technology (Mei - tY) released the “National Strategy on Block - chain” in 2021, aiming to establish a comprehen - sive framework for blockchain adoption across various sectors in India. This strategy focuses on creating a national blockchain infrastructure to support the TMT sector’s growth.
However, the legal status of cryptocurrencies remains ambiguous. In 2018, the RBI imposed a blanket ban on cryptocurrencies, which was overturned by the Supreme Court of India in March 2020. While cryptocurrencies are still not recognised as legal tender, it is legal to hold and trade them and gains from this are taxable in India. Challenges • Regulatory uncertainty – The absence of spe - cific laws regulating cryptocurrencies creates ambiguity for businesses and investors. In 2021, the government attempted to legislate the domain with the “Cryptocurrency and Regulation of Official Digital Currency Bill” aimed at creating a framework for an official digital currency issued by the RBI and pro - hibiting private cryptocurrencies with certain exceptions. However, the Bill never saw the light of day. • Compliance requirements – Entities dealing with virtual digital assets must comply with applicable anti-money laundering laws in India. Opportunities • Innovation and growth – Blockchain technol - ogy offers opportunities for innovation in the TMT sector, enabling the development of new services and business models. • Regulatory sandboxes – In February 2024, the RBI issued the latest version of the “Ena - bling Framework for [a] Regulatory Sandbox”, allowing innovators and fintech companies to test products in a controlled environment. The framework includes blockchain technolo - gies but expressly excludes cryptocurrency/ crypto-asset services.
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