India's Supreme Court chastises government over crypto policy

India's Top Court Rebukes Govt: Why Crypt Policy Remains Vague?

20 May 2025 at 16: 03

Reading time: 2 minutes

India’s top court has criticised the central government’s lack of a “clear” policy on cryptocurrency regulation. During a hearing, Justice Surya Kant noted that there is a “parallel sub-market” for cryptocurrency that could impact the economy. “Why doesn’t the government come out with a clear policy on cryptocurrency regulation?” they asked. “By regulating cryptocurrency, you can keep a check on the trading.”

Kant also expressed concern that trade in Bitcoin (BTC) “is more or less an illegal activity, similar to a Hawala business.” This refers to the informal deposit and transfer of money, which is illegal in India. The comments were made during the hearing of a bail application for Shailesh Babulal Bhatt, a Gujarat resident accused of cryptocurrency-related fraud.

Additional Solicitor General Aishwarya Bhati had argued that Bhatt was one of the largest BTC trading aggregators in Gujarat and had duped others with promises of high returns. However, the court could not determine whether Bhatt was both a perpetrator and a victim. They expressed regret over the government’s lack of regulation regarding cryptocurrency.

Last year, the Indian government had planned to publish a discussion paper on its stance on cryptocurrency in September, but this has not yet happened. A senior official explained in February that the delay was due to plans to review the impact of more crypto-friendly policies from the US, led by President Trump.

“Without clear rules, the future of cryptocurrency in India is like a ship without a compass.” This shows how urgent the need for transparent and efficient regulation is.

The developments in the Indian crypto market continue to be of great interest. It is important for both investors and policymakers to keep a close eye on this issue. What will happen next? The answer to this question could well determine the future of the digital economy in India.

Frequently Asked Questions

Why is there no clear crypto regulation in India?
The Indian government has struggled for years to formulate a clear policy for cryptocurrency, leading to confusion and uncertainty in the sector.

How does a lack of regulation affect the crypto market?
Without clear regulations, illegal activities can take place, which can harm both investors and the economy.

What are the news reports about future crypto regulations in India?
Plans have been announced for a discussion paper on crypto policy, but it has not yet been published, leading to questions about the future of crypto in the country.

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