Arbitrability of cryptocurrency disputes in India

Abstract Over the past decade, the growth of cryptocurrencies has amazed policymakers worldwide, prompting governments, international organizations, and corporations to address the increasing financial activity in this unregulated and decentralized industry. The murmurs of crypto disputes accelerated after the dramatic collapse of the crypto-trading platform Binance on the day Bitcoin was valued very low, leading to huge losses for its investors. This incident has led to discussions about the potential of using a private forum, such as arbitration, to resolve conflicts in the crypto world. However, adopting arbitration in cryptocurrency disputes raises complex questions, such as whether or not cryptocurrency disputes can be settled by arbitration. This article explores the issue of arbitrability of cryptocurrency-related disputes in India, particularly those related to payment and security tokens. Before discussing the issue of arbitrability, the article will first provide an overview of Indian law on cryptocurrencies, including their validity and regulation. Based on this legal background, it will examine the scope of arbitrability under the Arbitration and Conciliation Act of 1996, focusing on the subject matter in dispute and the public policy test.