Michaela
The Indian Supreme Court has questioned the central government for its continued inaction on regulating cryptocurrencies, warning that the lack of a clear legal framework has enabled widespread misuse and uncertainty in the sector.
India’s Supreme Court raised concerns over the lack of a regulatory framework for cryptocurrencies, even as the government continues to tax digital assets like Bitcoin (BTC). According to a report by Bar and Bench, Justices Surya Kant and NK Singh stated that while an outright ban on cryptocurrencies may not be economically prudent, there is a pressing need for clear regulations and supervisory mechanisms to address potential risks and misuse.
The Indian Supreme Court further emphasized that any decisions regarding cryptocurrency regulation should be made in consultation with experts to ensure a well-informed and balanced approach.
Additionally, the Court observed that the existing 30 percent tax on profits from Bitcoin trading suggests a degree of legal recognition. It questioned why, despite this acknowledgment, a comprehensive regulatory framework has yet to be implemented.
Justice Kant, addressing Additional Solicitor General Aishwarya Bhati, remarked that the judiciary continues to encounter practical difficulties in handling cases related to cryptocurrency, underscoring the growing need for legal clarity in the space.
“If tomorrow somebody asks, ‘Prove what is this asset, how are we going to prove it?” We are not experts. Experts will have examine it, but some steps to regulate it are necessary. We are told crypto trading is very volatile..today a Bitcoin might be worth lakhs and tomorrow it can mean nothing,” the bench said.
As the legal debate unfolds, India’s approach to cryptocurrency regulation remains a critical focal point for investors, policymakers, and the broader financial ecosystem. The Indian Supreme Court’s emphasis on expert consultation signals a cautious yet deliberate path toward establishing clear guidelines.
With digital assets gaining traction globally, the country faces the challenge of balancing innovation with investor protection and economic stability. How India navigates this complex terrain will not only shape its domestic market but could also influence regulatory trends worldwide.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
