Crypto Chaos: Why Is India Still Playing Hide and Seek with Regulation?

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So, India’s Supreme Court is basically throwing a tantrum at the government, demanding to know why crypto is still running wild like a toddler in a candy store. Apparently, they think bitcoin trading is just a fancy way of doing hawala, and they’re not too happy about its potential to mess with the economy. Who knew digital coins could be so dramatic? 🎭

Supreme Court Says: “Get Your Act Together, Government!”

The Supreme Court of India is on a mission, folks! They want the central government to whip up a clear policy on cryptocurrency regulation. Why? Because they’re worried it’s going to turn the economy into a circus. During a bail hearing for a guy accused of running shady bitcoin trades in Gujarat, Justices Surya Kant and N. Kotiswar Singh had a little chat with Additional Solicitor General Aishwarya Bhati, who was representing the Centre. The bench said:

“Why can’t the Centre just come out with a clear-cut policy on regulating cryptocurrency? There’s a whole under-market for it, and it could totally mess up the economy. Regulating it would be like putting a leash on a hyperactive puppy!”

Justice Kant didn’t stop there, oh no! He went on to say, “Trading in bitcoin is basically like hawala, but with a hipster twist.” Bhati, bless her heart, said she’d need to check with the government before giving a proper answer. Classic! 🙄

These comments came while they were reviewing the bail request of Shailesh Babulal Bhatt, who was arrested for allegedly tricking investors with promises of unrealistic returns through bitcoin. Apparently, he was a big fish in Gujarat’s bitcoin pond and had a knack for using some not-so-nice tactics, like kidnapping, to grow his little empire. Yikes! 😱

This isn’t the first time the Supreme Court has raised an eyebrow at the lack of regulation in India’s crypto scene. Back on May 5, they expressed concern about the absence of a legal framework, once again likening bitcoin transactions to hawala. The defense team argued that a 2020 Supreme Court ruling, which overturned a Reserve Bank of India (RBI) circular banning banks from dealing with crypto, basically gave cryptocurrency trading a VIP pass and weakened the charges against Bhatt. The case is also trying to get rid of multiple FIRs filed across the country claiming Bhatt duped investors. Talk about a legal mess! 🥴

As for India’s cryptocurrency regulation? It’s still a hot mess since a 2019 draft bill suggested banning private tokens and introducing a central bank digital currency. No formal law has been passed yet, but the government decided to start taxing crypto in 2022—30% gains tax and 1% TDS—treating it like a speculative asset without any legal status. Enforcement is getting tighter, with stricter KYC and oversight measures. And guess what? Regulatory bodies can’t seem to agree: SEBI is all for supervising crypto, while the RBI is like, “No thanks, we’re good!” citing financial stability concerns. What a soap opera! 🎬

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2025-05-21 06:11