- Date : 02/09/2022
- Read: 3 mins
Rights when investing in digital assets.
Digital assets like cryptocurrencies are unregulated in India. In India, there is no law which governs digital assets. But do not worry if you invest in digital assets as you are protected by some common laws. In case of fraud, you have redressal mechanisms you can use. To understand your rights when investing in digital assets, you first need to understand the ecosystem in which cryptocurrencies or other digital assets operate.
Cryptocurrencies or other digital assets are usually exchanged on various platforms. These exchanges provide the investors with a platform which is similar to the broking platforms they are familiar with. These exchanges provide you with a digital wallet which is used to store your digital assets like cryptocurrencies, NFTs, etc. These digital wallets can be provided by the exchange or any other service provider. The provider of the digital wallet might not be an exchange. Although the government has given cautionary advice regarding digital assets, there are some redressal mechanisms you can use for digital assets, as given below.
Your rights when you invest in digital assets
As we know that there is no law which governs digital assets, you can still make use of some laws to protect your interests. The first is the information technology laws. The laws provide you with the following rights:-
- The exchange must provide you with a grievance redressal mechanism.
- Your data should be secure.
- Have a mechanism to deal with cybercrimes and online theft or fraud.
- To allow you to change your personal information and banking information.
If the exchange does not provide this mechanism, you can terminate your relationship with the crypto platform. Your profile should be deleted by the platform.
Apart from the IT laws, Indian citizens have certain other rights like:-
- Right to be heard
- Right to redress
- Right to safety
- Right to be informed
- Right to consumer education
The guidelines are applicable to crypto transactions as well.
Related: How to invest in cryptocurrencies?
What should you do?
Although crypto transactions are not regulated in India, the IT laws and the general laws will help you to get some rights against unfair practices by the exchange. Also, you would be protected against fraud and theft. You should be aware of your rights before investing in digital assets. Also, you should check out the reviews of the exchange and invest with the top exchanges only. If you take the necessary precautions, you can reduce the chances of fraud. But, digital assets are a new asset which is largely unregulated, so invest only the amount you can afford to lose.