India’s Supreme Court has sharply criticized the central government for its continued inaction on regulating cryptocurrencies, warning that the legal vacuum is fostering abuse and undermining investor protection.

Justices Surya Kant and N. Kotiswar Singh noted that the government is already taxing cryptocurrency profits, effectively acknowledging their existence — yet still failing to introduce any regulatory framework. “Banning crypto is not a solution — regulation is urgently needed,” the bench stated.

⚖️ The Court Asks: If You're Taxing Bitcoin, Why Aren’t You Regulating It?

The comments came during a hearing tied to the infamous BitConnect crypto scam, in which one of the victims allegedly kidnapped two project employees in an effort to reclaim lost funds.

The court made it clear that the old excuse — "we can’t regulate crypto because it’s international" — no longer holds water. It urged the government to stop ignoring crypto’s growing role in the global economy and take action to oversee and supervise its use.

📉 Indian Investors Left Without Protection

The timing of the court’s criticism is notable, as other major economies are progressing with clear frameworks:

🔹 The European Union is actively implementing its MiCA regulations

🔹 The U.S. Senate recently advanced legislation focused on stablecoins

Meanwhile, Indian investors continue to face uncertainty. A prime example is the July 2024 WazirX hack, where $233 million in crypto was allegedly stolen. A consumer lawsuit was dismissed by the national consumer commission — not due to lack of evidence, but because cryptocurrencies are not legally recognized as investment assets in India.

🕵️‍♂️ BitConnect Case Still Open

The long-running 2018 BitConnect fraud case remains unresolved. Victim-turned-perpetrator Shailesh Bhatt is accused of kidnapping two employees and extorting:

🔹 2,091 BTC

🔹 11,000 LTC

🔹 ₹14.5 million in cash

During the recent hearing, the court asked the Additional Solicitor General for an update on the investigation. The next session is set for May 30, and the CBI has been instructed to complete its work before then.

📈 Bitcoin Surges While India Lags Behind

As India’s courts handle legacy crypto cases, the global market pushes forward. Bitcoin is now trading above $105,000, having reached an all-time high of $109,114 on January 20, 2025.

The digital asset market overall continues to grow — on Tuesday morning, global crypto market cap rose by over 2%, reaching $3.33 trillion, with daily trading volumes hitting $126 billion.



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