India's Supreme Court has recently expressed significant concerns over the central government's prolonged delay in establishing a clear regulatory framework for cryptocurrencies. On May 19, 2025, during a hearing, the Court emphasized that an outright ban on digital currencies is not a viable solution and advocated for the formulation of comprehensive regulations to govern the sector.
(The Times of India)
The bench, comprising Justices Surya Kant and N. Kotiswar Singh, likened the current state of cryptocurrency trading to a "hawala business," highlighting the risks associated with unregulated digital asset transactions. They stressed that the absence of a legal framework has created opportunities for misuse and fraud, posing potential threats to the economy.
(EconomicTimes)
This isn't the first time the Supreme Court has urged the government to take action. Two years prior, the Court had requested clear explanations on virtual currency policies, but substantial progress has yet to be made. The justices underscored that while cryptocurrencies are being taxed at a rate of 30%, the lack of regulation remains a significant concern.
(Followin)
The Court's recent statements serve as a call to action for the central government to expedite the development of a structured regulatory approach to cryptocurrencies, aiming to mitigate risks and provide clarity for investors and stakeholders in the digital asset space.
