India's Supreme Court has drawn a parallel between Bitcoin trading and the informal "hawala" money transfer system, citing concerns over a lack of transparency and regulation in crypto transactions. This comparison signals a potentially tougher regulatory stance toward digital assets.
Back in 2020, the same court had lifted the Reserve Bank of India’s ban on banks serving crypto businesses, which gave a boost to the country's crypto sector. However, the latest remarks suggest a shift in judicial tone that could lead to tighter oversight.
The statement also highlights the need for India to establish a clearer legal framework for digital assets.