Blockchain technology is increasingly being used for much more than cryptocurrencies. As its adoption grows across government and industry, legal experts believe India needs a broader policy framework to address the technology's expanding role in the country's digital ecosystem.

According to experts, discussions around blockchain should move beyond crypto regulation and focus on creating clear legal, governance, and technical standards for its wider use.

Blockchain Adoption Is Growing in India

Blockchain is already being used in several sectors across India, including:

• Document verification

• Digital credentials

• Land record management

• Supply chain traceability

Its ability to create secure, tamper-resistant digital records has made it an attractive technology for both public and private sector applications.

Experts Want Broader Policy Discussions

According to a report by The Economic Times, Hardeep Sachdeva, Senior Partner at law firm AZB & Partners, said that policy discussions in India have largely focused on crypto assets because of concerns such as investor protection, financial stability, taxation, money laundering, and cross-border transactions.

However, he believes this narrow approach could overlook blockchain's potential as a foundational digital infrastructure technology.

More Than Just Cryptocurrency

Experts argue that blockchain regulation should extend beyond determining whether digital tokens are taxable or tradable.

They say policymakers should also address issues such as:

• Data governance

• Interoperability between blockchain platforms

• Cybersecurity standards

• Auditability and transparency

• Smart contract enforcement

• Legal recognition of blockchain-based records

• Accountability frameworks

• Public-private partnerships

• Common technical standards

Creating clear regulations in these areas could encourage wider adoption while improving trust in blockchain-based systems.

Government Is Already Exploring Blockchain

India has already begun using blockchain technology in several government initiatives and has introduced the National Blockchain Framework (NBF) to support its adoption across public administration and industry.

As blockchain becomes an increasingly important part of India's digital transformation, legal experts say the country will need comprehensive policies that address not only cryptocurrencies but also the broader legal and administrative challenges associated with distributed ledger technology.

A well-defined regulatory framework, they argue, could help unlock blockchain's full potential while ensuring security, transparency, and accountability across digital services.