Cryptocurrency is a relatively new concept in India. Initially, there was apprehension among the Indian government and central bank about the use of cryptocurrencies that had no underlying legal framework and no physical form. However, over time, the Indian government and central bank started to recognize the potential for cryptocurrencies to revolutionize financial services. As of 2021, the Indian government has yet to decide on a regulatory framework for cryptocurrencies; however, they are exploring different regulatory options and some states have announced their own plans to regulate cryptocurrency transactions. This essay will discuss these regulations and analyze the current state of cryptocurrency regulations in India. We will evaluate the current situation and provide potential solutions that can benefit the Indian economy. Additionally, we will examine the implications of introducing a regulatory framework for cryptocurrencies in India and analyze the possible positive and negative impacts of such a framework. Finally, we will discuss potential alternatives and other considerations that should be taken into account when crafting a regulatory framework for cryptocurrency in India.