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Looking at the global market dynamics: Cryptocurrencies, regulatory challenges, and the potential for market abuse

Looking at the global market dynamics: Cryptocurrencies, regulatory challenges, and the potential for market abuse

The intertwining of technology with traditional markets has brought both innovation and complexity. As we witnessed in recent market activities, the holiday lull in the US did not stop the wheels of commerce from turning elsewhere.

Futures markets traded in the green, with the Dow, S&P, and Nasdaq futures showing marginal gains, signalling perhaps a cautious optimism or at least a stable pause in a year filled with volatility. However, beneath this surface calm, significant shifts are occurring in regulatory practices and market behaviours, particularly in the realm of cryptocurrencies.

The US financial scene was somewhat muted due to the holiday, but Federal Reserve Governor Michelle Bowman’s comments provided insight into the central bank’s ongoing thought processes. She highlighted a nuanced view of the US economy, acknowledging that while inflation might decline, the risks of an uptick remain, and she needs more assurance before advocating for rate cuts.

This perspective is crucial as it affects not just domestic markets but global ones, with the US dollar index showing a slight decline and gold prices rising, possibly reflecting bets on inflation or a softening dollar.

However, the real intrigue lies in the developments in Asia and Latin America, where the integration of cryptocurrencies into mainstream finance is taking bold steps forward but also encountering significant hurdles.

Thailand’s leap into tokenised securities

Thailand’s Securities and Exchange Commission (SEC) has announced its embrace of crypto, setting the stage for trading in tokenised securities. This move is a testament to the country’s forward-thinking approach to finance, aiming to leverage blockchain technology’s security and transparency to modernise its market infrastructure.

Tokenisation, the process of representing physical or traditional securities in digital form on a blockchain, promises to enhance market liquidity, reduce costs, and increase accessibility. However, this step also comes with its challenges, including ensuring investor protection, navigating regulatory compliance, and managing the inherent volatility of crypto-assets.

The Thai SEC’s initiative could set a precedent for other nations contemplating similar moves, providing a model for how regulatory bodies can balance innovation with oversight.

South Korea’s Upbit in the regulatory crosshairs

In contrast, South Korea’s largest cryptocurrency exchange, Upbit, finds itself under scrutiny. The Financial Services Commission has uncovered over 700,000 violations concerning customer verification, a cornerstone of anti-money laundering efforts. This revelation not only questions Upbit’s operational integrity but also highlights the broader issue of regulatory compliance within the crypto industry.

The swift response from Kim Byoung-hwan, promising a quick conclusion to the case, underscores the urgency with which regulators worldwide are tackling these issues. The outcome of this case could influence how other countries approach similar regulatory challenges, potentially setting stricter standards or leading to more robust compliance frameworks across the industry.

The Argentine scandal: A cautionary tale

The situation in Argentina involving President Javier Milei adds another layer to this narrative. Milei’s promotion of the cryptocurrency $LIBRA on social media, followed by its rapid collapse, underscores the risks of high-profile endorsements in the crypto world. Here, we see not just a market fluctuation but potential market abuse where regulatory oversight might be lacking.

The allegations of fraud filed against Milei highlight the precarious balance between advocating for innovation and ensuring market integrity. The $LIBRA incident, where investors lost millions following the president’s post and subsequent retraction, serves as a stark reminder of the volatility and potential for manipulation in cryptocurrency markets.

This case brings to light several critical points.

Firstly, the power of social media in influencing market behaviour cannot be underestimated. When leaders with significant followings endorse financial products, especially those as volatile as cryptocurrencies, they wield immense influence over market dynamics.

Secondly, it calls for a reevaluation of how public figures interact with financial markets. Should there be clearer guidelines or outright bans on such endorsements to prevent similar occurrences?

Lastly, it emphasises the need for robust regulatory mechanisms that can adapt to the speed and anonymity that blockchains offer, ensuring that the enthusiasm for crypto does not lead to platforms for fraud.

Looking forward

As we stand at this juncture, the crypto landscape is clearly at a crossroads. On one hand, there’s a push towards integration into traditional finance systems with initiatives like tokenised securities in Thailand. On the other, there’s the cautionary tale of regulatory lapses and potential malfeasance in South Korea and Argentina.

The path forward involves a delicate balance. Regulators must foster innovation without stifling it, providing clear guidelines that protect investors while allowing the market to explore new financial instruments. The industry needs to mature, adopting best practices in compliance and transparency. Investors, too, must become more discerning, understanding the risks associated with these new asset classes.

In conclusion, while the integration of cryptocurrencies into global financial systems offers unprecedented opportunities for growth and democratisation of finance, it also presents significant risks. The cases of Thailand, South Korea, and Argentina illuminate the spectrum of possibilities and pitfalls.

As we navigate this new financial frontier, the lessons learned from these scenarios will be invaluable. They remind us that with great innovation comes the responsibility of great oversight, ensuring that the future of finance is not just innovative but also secure and equitable for all participants.

 

Source: https://e27.co/looking-at-the-global-market-dynamics-cryptocurrencies-regulatory-challenges-and-the-potential-for-market-abuse-20250218/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto in India: Balancing Adoption and Regulatory Challenges

Crypto in India: Balancing Adoption and Regulatory Challenges
Imagine a country caught between the excitement of new digital money and the worry of keeping its financial system safe. That’s India right now, grappling with the world of cryptocurrency. It’s like walking a tightrope – lean too far one way, and you might miss out on a financial revolution; lean too far the other, and you risk financial chaos.

This balancing act has led to a series of back-and-forth decisions, leaving both crypto enthusiasts and government officials scratching their heads. India isn’t saying a flat-out “yes” or “no” to crypto. Instead, it’s trying to find a sweet spot where it can enjoy the benefits of this new technology without putting its economy at risk. But with the government sending mixed signals and a much-anticipated Crypto Bill still in the works, everyone’s left wondering: what’s next for crypto in India?

The Crypto Bill: A Work in Progress

The Crypto Bill has become somewhat of a legend in Indian crypto circles. Initially seen as a potential game-changer, it was expected to pave the way for a digital currency issued by the Reserve Bank of India (RBI), hinting at a progressive stance that could put India at the forefront of the CBDC revolution.

The reality has been more complicated. The bill, years in the making, has faced numerous revisions and delays. Its contents remain unclear, with conflicting reports about its stance on private cryptocurrencies. This lack of clarity has left the Indian crypto community uncertain about the future of their investments and businesses. The bill’s journey mirrors the global struggle to effectively regulate digital assets. While governments see the potential of blockchain and digital currencies, concerns about financial stability, investor protection, and illicit activities remain significant.

Mixed Messages from the Ministry of Finance

Adding to the complexity, India’s Ministry of Finance recently stated there are no proposals for legislation governing digital asset trading. This announcement surprised many, given the ongoing discussions about the Crypto Bill. This apparent contradiction reveals differing viewpoints within the Indian government regarding cryptocurrency regulation. It also highlights the challenge policymakers face in keeping up with the rapidly evolving crypto landscape.

The Ministry’s statement is open to interpretation. It could suggest a hands-off approach, allowing organic market evolution. It might indicate that the government is still formulating its position, preferring to observe global regulatory trends before committing to a specific course of action.

The Adoption Paradox: India and China

One intriguing aspect of India’s crypto story is the disconnect between regulatory caution and widespread adoption. Despite the government’s cautious stance and occasional anti-crypto rhetoric, India has seen a surge in crypto adoption. This phenomenon isn’t unique to India. China, despite taking a stricter approach with outright bans on cryptocurrency trading and mining, also continues to see strong crypto adoption among its citizens.

A Chainalysis report revealed that India ranked second largest crypto market in the world in terms of raw transaction volume, beating UK, Turkey and Russia. This high adoption rate, despite regulatory uncertainty, speaks volumes about the perceived value and potential of cryptocurrencies among the Indian population. The situations in India and China offer valuable insights for policymakers worldwide. They suggest that heavy-handed attempts to discourage crypto adoption may be ineffective and potentially counterproductive. Instead, a more nuanced and adaptive approach to crypto regulation may be necessary.

Self-Regulation: A Potential Bridge

Given the challenges of top-down regulation, there’s growing support for self-regulation within India’s crypto sector. This approach could offer a middle ground between unfettered market freedom and stringent government control.

Self-regulation in the crypto space could involve industry-led initiatives to establish best practices, implement robust KYC and AML procedures, and create consumer protection mechanisms. By proactively addressing regulatory concerns, the crypto industry could demonstrate its commitment to responsible growth and potentially ease some of the government’s apprehensions. Some Indian crypto exchanges have already taken steps in this direction. WazirX, a major Indian crypto exchange, has implemented stringent KYC procedures and collaborates with law enforcement agencies to prevent illicit activities.

Nevertheless, self-regulation has its limitations. I would argue that it may not sufficiently address all regulatory concerns and could potentially lead to conflicts of interest. Despite these challenges, self-regulation could play a crucial role in the short to medium term, especially given the current regulatory uncertainty.

The Current Landscape: Taxation and AML Measures

While India may lack a comprehensive crypto regulatory framework, it has taken steps to bring the sector under some form of oversight, primarily through taxation and anti-money laundering measures. The 2022 budget introduced a 30% tax on income from cryptocurrencies and other digital assets. Additionally, a 1% Tax Deducted at Source (TDS) was imposed on crypto transactions above a certain threshold. On the AML front, crypto exchanges operating in India must comply with the Prevention of Money Laundering Act (PMLA).

These measures represent a pragmatic approach to crypto regulation. By focusing on taxation and AML compliance, the government has found a way to exercise some control over the crypto sector without explicitly legalizing or banning cryptocurrencies.

Binance’s Regulatory Milestone in India

I believe this is a significant development that could reshape India’s crypto landscape. Global cryptocurrency exchange Binance achieved a major regulatory breakthrough on August 15, 2024. Binance announced its successful registration as a reporting entity with India’s Financial Intelligence Unit (FIU-IND), marking its 19th global regulatory milestone. This registration underscores a pivotal shift in India’s approach to cryptocurrency regulation and offers a compelling case study of how international players can navigate the country’s evolving regulatory framework.

Binance’s registration demonstrates its commitment to adhering to India’s anti-money laundering (AML) standards, aligning with the government’s focus on preventing illicit activities in the crypto sector. It also allows Binance to fully operate its website and application for Indian users, providing them access to a comprehensive suite of crypto services and tools.

Binance CEO Richard Teng emphasized the significance of this milestone, stating, “Recognizing the vitality and potential of the Indian VDA market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users.”

This development is particularly noteworthy given India’s position in the global crypto landscape. India leads the world in grassroots adoption according to Chainalysis’ 2023 Global Crypto Adoption Index, India leads the world in grassroots crypto adoption, ranking in the top five by estimated transaction volume across various crypto platforms and protocols.

Binance’s successful registration and entry into the Indian market could serve as a catalyst for more comprehensive crypto regulations in India. It demonstrates that it’s possible for global crypto players to operate within India’s regulatory framework, potentially encouraging the government to develop more detailed guidelines for the industry.

The Need for Clarity: A Growing Chorus

Despite recent developments, there’s a growing chorus calling for greater regulatory clarity. The crypto industry in India argues that clear regulations are essential for the sector’s growth and for attracting institutional investments. They contend that regulatory uncertainty hampers innovation and puts India at risk of falling behind in the global crypto race.

Moreover, clear regulations could provide better protection for retail investors and help prevent illicit activities. The Supreme Court of India, in its 2020 judgment that lifted the RBI’s banking ban on crypto, emphasized the need for clear regulations, noting that the absence of regulations does not make an activity illegal by default.

Global Lessons: Charting a Path Forward

As India navigates its crypto regulatory journey, it can learn from global experiences. Different countries have adopted varying approaches to crypto regulation, ranging from outright bans to embracing cryptocurrencies as legal tender.

The United States has taken a largely fragmented approach, with different agencies exercising oversight based on their jurisdictions. In contrast, countries like Switzerland and Singapore have developed more comprehensive crypto-friendly regulations. El Salvador’s bold move to adopt Bitcoin as legal tender offers another interesting case study, albeit one that comes with significant risks and challenges. India could potentially carve out a middle path, drawing on these global experiences while tailoring its approach to its unique economic and social context.

Finding the Balance: Embracing the Inevitable

Looking ahead, it’s clear that India needs a balanced and nuanced approach to crypto regulation. The country’s large and tech-savvy population, coupled with its growing digital economy, presents immense opportunities in the crypto space. These opportunities however must be balanced against legitimate concerns about financial stability, consumer protection, and illicit activities.

A potential roadmap for India could involve developing clear legal definitions for cryptocurrencies, creating a regulatory framework that distinguishes between different crypto activities, establishing a licensing regime for crypto businesses, encouraging innovation through regulatory sandboxes, investing in public education about cryptocurrencies, and collaborating with international bodies to develop global standards for crypto regulation.

In conclusion, India’s journey with cryptocurrency regulation reflects the global struggle to come to terms with this disruptive technology. The high adoption rates despite regulatory uncertainty demonstrate that cryptocurrencies are not a passing fad, but a financial innovation that’s here to stay. By embracing the inevitability of crypto adoption and working towards clear, balanced regulations, India has the opportunity to position itself as a leader in the global crypto economy. This approach could unlock significant economic benefits while addressing legitimate regulatory concerns.

As India stands at this crucial juncture, the decisions it makes regarding crypto regulation will have far-reaching implications, not just for its own economy, but for the global financial landscape. The world watches with keen interest as this crypto conundrum unfolds in one of the world’s largest and most dynamic economies.

 

Source: https://www.securities.io/crypto-in-india-balancing-adoption-and-regulatory-challenges/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Legal Implications And Regulatory Measures For AI Integration In The Indian Legal System

Legal Implications And Regulatory Measures For AI Integration In The Indian Legal System

I am documenting this on my site. I am happy to see my work is being used on their research paper. Thank you.

Here is a bit information on who this organisation is.

The Amikus Qriae is a student run organisation registered under the Ministry of MSME, GOVERNMENT OF INDIA. which aims to cater to the needs of scholars, professionals, researchers and everybody else in the legal domain.

As the name suggests, we are companions to legal aspirants as well as experts with an aim to bridge the gap between the accessible information and the aspirants. With a comprehensive content team of law students across the country, we aim to provide relevant and contemporary information on all the legal affairs across the globe.

A huge team at The Amikus Qriae strives hard incessantly and unfailingly to apprise its viewers about the indispensable legal news, prime events, essential seminars/ webinars conducted by The Amikus Qriae in addition with the same conducted by the other prominent organizations.

 

ABSTRACT

This research examines the legal implications and regulatory initiatives of integration of artificial intelligence into the Indian legal framework. It examines India’s current legal system and regulatory ingenuity with a focus on the Personal Data Protection Act (PDPB). and the importance of ethical guidelines and best practices. The article also discusses case studies on the application of Al in the Indian legal system and presents the potential of Al in streamlining legal processes and denial of justice. In addition, the study highlights key challenges and gaps in aluminum legislation in India, including the lack of specific Al provisions and the need for continuous review and adaptation. It emphasizes the importance of balancing innovation with ethical and legal standards to promote public trust in Al technologies. To address the challenges, the paper offers recommendations for the ethical and legal integration of Al legal  into the Indian legal system. These recommendations include strengthening data protection legislation, increasing AL transparency and accountability, promoting ethical guidelines and legal training, and fostering collaboration between legal and technical experts. By implementing these recommendations. India can create a regulatory environment that ensures responsible and ethical use of Al in the legal system, protects individual rights, promotes justice and fosters an internal attitude. The findings of this study contribute to the ongoing debate on Al integration in the legal sector and provide insights for policy makers and stakeholders involved in shaping the future of Al regulation in India.

Keywords : Intellectual property rights , data protection , artificial intelligence ,legal system ,technologies .

INTRODUCTION

The adoption of artificial intelligence (AI) technology has significantly impacted lawyers. This development has the potential to revolutionize legal procedures and increase the efficiency of legal services. However, the use of Al in the legal field raises several ethical and legal issues that must be carefully considered and considered. This study focuses on Indian laws and regulations and seeks to explore the ethical and legal implications of Al ethical and legal in the legal system.

Artificial intelligence is a phrase used to describe the development of computer systems capable of performing tasks that normally require human intelligence. More and more legal professionals are using artificial intelligence (AI) skills such as data analytics, machine learning and natural language processing. These technologies enable activities including legal research, contract analysis and decision making to be completed faster and more accurately. The integration of artificial intelligence (AI) has the potential to increase productivity, save costs and improve the level of legal services.

RESEARCH OBJECTIVE

The purpose of this study is to examine the ethical and legal implications of Al in  Law under Indian law. The aim is mainly to:

  • Give an overview of Al techniques used in the legal field, including an explanation of what Al is and its different subtypes.
  • To study the use of Al in the field of law with a focus on the Indian country and its specific use cases and benefits.
  • AI impact on the Indian legal industry while considering the changing roles and responsibilities of legal professionals.
  • Al ethical implications for the legal system, focusing on accountability, transparency, interpretability, bias, and privacy.
  • Al legal implications in terms of liability, data protection laws and intellectual property rights.
  • Analys the legal and regulatory frameworks in India that address the ethical and legal implications of Ali in the legal system.
  • Describes the difficulties and shortcomings of Indian law in relation to Al and the need for constant review and amendment.
  • Propose ethical and legal integration of artificial intelligence (AI) into the Indian legal system, including strengthening data protection laws, increasing AI transparency and accountability, promoting ethics guidelines and legal training, and fostering collaboration between legal and technology experts.

METHODOLOGY

This research uses a qualitative research method that combines a literature review with an analysis of relevant legal frameworks and regulatory measures. Draws broad conclusions and identify gaps and difficulties, compare the results of literature review, legal framework analysis and case studies. Make recommendations for the ethical and legal integration of AI into the Indian legal system based on the analysis. The study uses this technique to give a complete understanding of it ethical and legal implications of artificial intelligence under Indian law. Paper conclusions and the recommendations contribute to the ongoing debate on ethical Integration Artificial intelligence for the Indian legal system.

LITERATURE REVIEW:

Thoroughly research academic journals, conference proceedings, books and other relevant publications to determine the ethical and legal implications of artificial intelligence (AI) under Indian law. Existing literature identifies key concepts, ethical issues, legal frameworks and case studies relevant to the topic.Studying relevant Indian laws such as data protection laws, intellectual property rights and liability laws to assess their applicability and suitability to address the ethical and legal implications of the Al Act.

OVERVIEW OF ARTIFICIAL INTELLIGENCE IN LAW

DEFINITION AND TYPES OF AI :

Artificial intelligence (AI) is the theory and development of computer systems capable of performing tasks that have historically required human intelligence, such as lecture identification, judgement making and figure acknowledgement. Artificial intelligence is an umbrella term that encompasses countless technologies, including machine learning, deep learning, and natural language procedure. It includes various techniques and methods that enable machines to learn, reason and make decisions independently. AI can be broadly divided into two types: narrow AI and general AI.

Narrow Artificial Intelligence (ANI) refers to a goal-oriented version of AI designed to  perform a single task better, such as monitoring the weather, creating data science reports by analysing raw data or playing games like poker, chess, etc.

General AI, on the other hand, refers to artificial intelligence systems that have human-like intelligence and can understand, learn and apply knowledge in various fields.

Applications of artificial intelligence in the field of law:

Many applications of artificial intelligence in the legal field have changed many  legal aspects to practice Some notable applications include:

Legal research: AI-powered algorithms can analyse a lot of legal information and precedents  legal research faster and more accurate. Legal professionals can save a lot of time and seeks to quickly identify relevant statutes, jurisprudence and legal opinions using artificial intelligence systems.

Contract analysis: AI can accelerate contract analysis by automatically breaking down and analysing  important clauses, notice potential pitfalls and make suggestions. It helps the law specialists in contract drafting, research and administrative tasks.

Predictive analytics: AI algorithms can examine historical legal data and models to predict case outcomes, judgments and legal strategies. It can help lawyers assess their chances of winning the case and help them make defensible choices.

Document review: AI-powered systems can examine and evaluate large volumes of documents  importance, privileges and important information, including regulatory notices, contracts and  discovery documents. This greatly increases the efficiency and accuracy of  document review  process.

Legal chatbots: AI-powered chatbots that can chat with customers and offer advice, guidance, and answers to frequently asked questions in the legal field. Chatbots can answer general questions  questions, release the lawyers and time for more difficult tasks.

THE IMPACT OF AI ON THE LEGAL PROFESSIONS IN INDIA

The provision and availability of legal services in India may change as a result of the implementation in the legal field of artificial intelligence. Efficiency, cost effectiveness and efficiency of legal processes everything can  be improved by artificial intelligence technologies. They can automate tedious and routine tasks, freeing you up lawyers can focus on work that is more valuable and requires human expertise. Together thanks to the  use of artificial intelligence (AI), legal research can be done faster and more  accurately. It can also provides data insights for tactical decision making. With the addition of legal solutions   AI can also improve access to justice.

However, the use of artificial intelligence in the legal field also raises concerns about job losses and ethics issues and the need for lawyers to acquire new skills to stay current. The term “AI in law” refers to a variety of tools and strategies that can be completely transformative  legal practice  It offers opportunities to improve the speed, accuracy and accessibility of the law procedures Ethical and legal implications must be carefully considered to ensure a responsible and successful integration of AI into the Indian legal system. Profession, regulatory framework requirement and professional development.

LEGAL  IMPLICATIONS  OF  AI  IN LAW

Data Protection Legislation in India: The use of Al in the legal sector is heavily regulated by data conservation laws in India. The Personal Data Protection Bill[1] (PDPB) is the most important data in India and defence legislation. The PDPB controls the collection, storage, processing and transmission of data create a comprehensive personal data protection framework. It is important to follow data protection regulations, because artificial intelligence systems used in the legal sector are often relied on a large amount of personal data. According to the PDPB, organizations deal with personal data, including artificial intelligence systems, are required to ensure fair and lawful data processing, obtain consent as necessary. Legislation requires the implementation of a data controller necessary security measures, to maintain the accuracy of data and to give rights to individuals access, correct and delete your personal data. There must be violations related to personal data notify the relevant authorities immediately. Artificial intelligence systems are used to protect the confidentiality and security of people’s personal information lawyer must comply with data protection laws. Organizations and legal professionals They should assess and implement the impact of their Al systems on data protection necessary safeguards and ensure that they have systems in place to process personal data As per PDPB guidelines.

INTELLECTUAL PROPERTY RIGHTS : There are several legal issues related to intellectual property rights  The AI Act increased ownership and patentability of  content produced by AI. in relation to inventions and works created by artificial intelligence. Intellectual property rights are traditionally given to authors or inventors who are human but use artificial intelligence systems the creative process challenges these long-standing conventions. The question of who is the author  and who owns the rights to works produced by AI is complex  and varies by jurisdiction. AI systems are not considered legal entities in most states, including India, and therefore do not have legal personality  intellectual property rights. 7 The legal framework necessary to deal with these novels challenges are discussed and further explored. Artificial intelligence systems can participate in creation  new ideas or inventions are patentable. But inventions generally must have  a human inventor is patentable. 8 Although inventions produced by artificial intelligence are not necessarily eligible   however, in the case of patents,  they may fall under other types of intellectual property rights, such as  trade secrets or utility models. To be aware of the development of technology, the relationship between artificial intelligence and intelligence  property rights must be carefully considered. Discussion and relevant research  frameworks that  balance  human factors, artificial intelligence systems and other advantages  society as a whole are crucial for legal experts and policy makers.

LEGISLATIVE PROCEDURES DEALING WITH TECHNICAL SYSTEMS IN INDIA AND OTHER COUNTRIES

METHODS : Many governments see Al as a strategic resource that can increase global competitiveness and  economic growth. According to a 2018 report by McKinsey and Company, artificial intelligence[2]  it will have a global economic impact of $13 trillion  by 2030. The sub-plan has been completed   at least 50 national governments, with more now working on one. In 2023 it is  worldwide, the market size was estimated at $563 million. Most nationalities where the World Bank is actively helping to modernize governments, is not yet ready  you use  or are just starting to use Ali. For example, Africa or Latin America do not belong here  Among the top 20 countries in the Oxford Insights Al Readiness Index. With  four exceptions  The Asia-Pacific region also lags behind the world in terms of development. Slowly getting the hang of it  Al can widen the wealth gap between developed countries and the rest of the world. ok Customers who are interested in learning about artificial intelligence are aware of the possibilities for the development of artificial intelligence  During their development, this memorandum outlines the opportunities and threats that must be mitigated.

India : India is the second most populous and fastest growing economy  the world depends on the Al revolution and continued growth. This was recently announced by the government   “National AI Strategy[3] #AlforAll”. Govt is thinking about NITI Aayog

list “health, agriculture, education, smart city infrastructure and transport/mobility”   five potential beneficiaries of Al development that can boost economic growth and more  participation The aim of the initiative is to increase job opportunities for Indians, provide financial support  economic  growth and social impact and to encourage exports of aluminm products from India to other countries  developing countries In addition to supporting research, encourage retraining and training accelerate the adoption of artificial intelligence (AI) across the value chain and  NITI Aayog has drafted more than 30 policies to improve AI ethics, privacy and security  recommendations.

UNITED STATES: United States: The importance of maintaining American leadership in that field  President Trump emphasized artificial intelligence  in 2019

The “America Al Initiative” was officially unveiled at the same time as President Trump  Executive Order 19. Purpose is to promote Al’s Rand with federal funding

The US economy and national security.  American Al initiative, the most important of which  principles include “investing in Al Rand releasing Al resources, establishing Al management standards,  Improving the entire workforce, international engagement, and protecting American interests  adopts a multifaceted strategy to strengthen US global leadership  Al. 282 dollars The  million euros invested  in Al projects by venture capital companies in 2012 should reach $5 billion  and $8 by 2017.  billion next year.

China: China is moving toward its goal of dominating global development of Al   announced the “Next Generation Artificial Intelligence Development Strategy” in July 2017. Skill development and industrialization are parts of the reference frame, e.g.  training, skill development, rules, morale and safety. Most plans say Chinese alum  surpass competitors by 2020, take a leading role in some alum sectors by 2025  and become the world’s most important alum innovation canter  by 2030. Beijing and Tianjin are both accelerating the country’s Al development projects, and Beijing plans to build artificial intelligence techno and Tianjin aim to create an Al foundation.

RECOMMENDATION AND SUGGESTIONS FOR LEGAL IMPLEMENTATION IN INDIA WITH THE HELP OF THE GOVERNMENT

The Committee on Science and Technology  recently urged the administration to disclose everything  in cases where the central government uses algorithms. The only solution is to add   transparency of  algorithms providing public services. Towards technology and decision making and justification processes must become more open and people-centred. Because their  decisions can be explained to the public, they cannot simply be regularly reviewed and corrected  professionals, but also to restore public trust in state institutions. The document lays out a process for determining whether  the government is responsible or not  based method that could be applied. This would require the development of a guarantee system  To strategy and its effective and successful implementation. It would come true continuously monitor and evaluate how well Ali’s initiatives and projects are performing. But simply relying  on  process-based  accountability is not enough. officers, managers and members are responsible for implementing and carrying out the described activities supplies needed by the general public. Now private sector companies range from law firms to credit card companies bring together top talent in key departments to develop mind maps of their thinking  processes. Importantly, these rules-based Al systems create a human-readable audit trail show the weight of their decision criteria, which allows to identify and  removing any prejudices. The mind mapping method of  human decisions for robots enables visualization and  teaches ethical and compliant decision-making processes. Government employees are more likely behave morally when there is algorithmic responsibility. Using a “mind map” for simulation  typical public service hiring procedures can reveal hidden biases such as skills “Hot-desking” practices in offices should prejudice autistic people who value routine. Encoding human data into machines also makes excellent civil servants to  institutionalize the  implementation of its ethical and transparent decisions throughout the organization. creating a “plan”. It can help both computers and people   to ensure that choices in areas as diverse as immigration and parole are made fairly and consistently, and in a responsible manner.

CONCLUSION: This study explained the legal implications and legislative requirements of incorporation artificial intelligence in the Indian legal system. The importance of data protection and the demand for ethical guidelines and best practices regarding the application of artificial intelligence by analys the current legal framework and regulatory measures  such  as the Personal Data Protection Act (IDPB). Case Studies on the Use of Artificial Intelligence in Indian Law the  system showed how procedures can be accelerated and  access to legal protection can be improved. However, the study also highlighted several problems and loopholes in Indian legislation according to artificial intelligence. These include the lack of specific AI regulations, the requirement for continuous operation  assessment and adaptation and the delicate balance that must be maintained between them  innovations and moral and ethical principles. Ensuring responsible and successful work Addressing these issues is imperative when integrating AI into the Indian legal system. The article provides important guidelines for the ethical and legal integration of AI in India legal system to solve these problems. Strengthen data protection legislation in the age of artificial intelligence is essential to protect individual rights and privacy. Increasing AI accountability and transparency increases trust and ensures the explain ability of  legal decisions based on artificial intelligence.  Legal professionals can navigate the ethical aspects of artificial intelligence  promoting ethical standards and receiving training. A multidisciplinary approach to the regulation of artificial intelligence is possible thanks to the promotion of cooperation between legal and technological

experts, which  also helps promote holistic  understanding  its implications.

PRIYA RAJAWAT  

INDORE INSTITUTE OF LAW

[1] Anndy Lian, ‘The Legal Implications of AI-Generated Content in Copyright Law’ (India AI, 02 May 2023) https://indiaai.gov.in/article/the-legal-implications-of-ai-generated-content-in-copyright-law accessed 13

June 2023

[2] Corinne Cath, ‘Governing artificial intelligence: ethical, legal and technical opportunities and challenges’ (2018)

376(2133) The Royal Society <https://royalsocietypublishing.org/doi/10.1098/rsta.2018.0080> accessed 13 June

2023

[3] Mathew Chacko et al., ‘A Guide to the Data Protection Bill, 2021’ (Monday, 20 July 2022) https://www.mondaq.com/india/privacy-protection/1213494/a-guide-to-the-data-protection-bill-2021 accessed 18 June 2023

 

 

 

Source: https://theamikusqriae.com/legal-implications-and-regulatory-measures-for-ai-integration-in-the-indian-legal-system/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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