Crypto-currency: A Bubble waiting for a Burst?

Abstract

Crypto-currency has made news headlines in recent times after Tesla’s USD 1.5 billion investments in Bitcoin. It is the biggest disruption in fintech and has remained in controversies since its inception due to its opaque nature and cryptic private transfer between parties with private keys, which cannot be ruled out for illegal transactions, like money laundering, terror financing, human trafficking, usage of it in ‘dark web’ etc. Some countries like Japan, Switzerland though allowing legally their transactions, has made the regulatory affairs stringent, especially in line with their PMLA Act. In country like India, its trading is also happening by many entrepreneurs, though RBI has expressed its concern that allowing Crypto-currency trading might destabilize financial stability. This article has tried to unfold the mystery of Crypto-currency with elaborate discussions of its regulations and practices in different countries.