The provided sources offer a comprehensive overview of the regulatory landscape for digital assets and the status of Decentralized Finance (DeFi), particularly focusing on India's evolving crypto framework. Multiple reports confirm that cryptocurrencies in India are currently viewed as Virtual Digital Assets (VDAs), subject to a strict 30% tax on gains and a 1% TDS, though they are legal to trade but not recognised as legal tender. Concurrently, India's central bank has launched a Digital Rupee (e₹) pilot, a Central Bank Digital Currency (CBDC), which is undergoing gradual implementation. Internationally, institutions note that institutional adoption of DeFi remains low despite technical progress, citing persistent concerns over legal certainty and risk, while global bodies like the FATF stress the urgent need for jurisdictions to implement AML/CFT standards for Virtual Asset Service Providers (VASPs), including the challenging Travel Rule, due to illicit finance risks. Furthermore, sources discuss technical solutions like Layer 2 scaling solutions (e.g., Arbitrum, Polygon) necessary for enhancing the efficiency and user experience of decentralised networks like Ethereum.