Supreme Court Expresses Concern about Crypto: Asks Government to Regulate the Sector

During a recent hearing regarding an ongoing investigation into a Bitcoin transaction, the Indian Supreme Court raised significant concerns about the country’s crypto sector. Justice Surya Kant even called it a danger to the country’s economy.

Cryptos like Bitcoin and other digital assets are taxed up to 30% in India. While the Indian government has recognised such assets by bringing them under the taxation system, it has failed to establish a regulatory framework for them. Justice Kant has questioned the lack of regulatory clarity in the crypto sector caused by its unregulated nature.

The Matter of Misuse

Justice Kant expressed crucial concerns about the misuse of cryptos. He acknowledged that a framework of rules and regulations is in place, but there are considerable gaps. That leads him to question the genuineness of some Bitcoins and how they can be used in illegal business.

Bitcoins on the blockchain are authentic, so his remark most probably was about certain Bitcoin transactions being associated with illegal or unethical activities. In any case, his comments have emphasised the country’s need for a more transparent and robust regulation of the crypto space.

What Does the Government Have to Say?

The Indian government’s taxing of cryptos and requiring firms to report selected activities to regulators, while not framing a strong regulatory framework, has been criticised by the court and the industry and policymakers.
A senior legal representative of the government of India, the Additional Solicitor General of India, who was present at the hearing, has reportedly stated that the government is taking instructions. This indicates that the government is open to reviewing the existing crypto regulatory framework.