K Rajaraman, chairperson of the International Financial Services Centres Authority (IFSCA), emphasized a restrained approach to blockchain adoption in finance at a forum in Gujarat. He highlighted risks linked to cryptocurrencies, which are banned in GIFT City, while distinguishing blockchain technology from crypto assets.
At the inaugural session of the Indo-Swiss Blockchain Forum 2026 held at Rashtriya Raksha University (RRU), K Rajaraman, chairperson of the International Financial Services Centres Authority (IFSCA), described India's regulatory stance on blockchain as one of restraint rather than rapid adoption. He stated, "Trust is very expensive. It takes a long time to build but can be destroyed in a nanosecond." Rajaraman stressed that any technology entering the financial system must show accountability on par with existing institutions. "If you perform the functions of a bank, you will be regulated like a bank, regardless of whether your ledger is a SQL database or blockchain," he said. He characterized IFSCA's approach as "same activity, same risk, same regulation".
Distinguishing between blockchain technology and crypto assets, Rajaraman noted that cryptocurrencies have not been allowed within the GIFT-IFSC ecosystem. "We have not allowed cryptocurrencies into the GIFT-IFSC ecosystem due to concerns around anti-money laundering, counter-terror financing and financial instability," he said. He pointed out that volatility and anonymity present risks to financial integrity and national security.
Rajaraman warned of governance challenges arising from decentralization. "In traditional finance, there is a clear chain of responsibility when things go wrong. In a fully decentralised network, that safety net disappears," he said. He described a system without a defined point of responsibility as resilient in operation but fragile in governance.
He highlighted legal and evidentiary obstacles to integrating blockchain into current frameworks, such as the incompatibility of electronic evidence certification with permissionless blockchains. Regulatory sandboxes are being used to test limited use cases, including the tokenisation of real-world assets.
The three-day forum, organized by RRU's School of Applied Sciences, Engineering and Technology in collaboration with the University of Zurich, gathers regulators, academics, and industry experts from India and Switzerland. RRU Vice-Chancellor Bimal N Patel said, "Blockchain is increasingly becoming part of the DNA of global financial infrastructure." Lena Robra, Head of Swissnex India, stated, "Trust will become one of the most important currencies."
