India's Supreme Court has raised concerns about the lack of regulatory clarity surrounding cryptocurrencies, despite the imposition of taxes on digital assets like Bitcoin. According to LawChakra, the court expressed worry over the increasing use of Bitcoin and other cryptocurrencies while remaining largely unregulated. Justice Surya Kant stated during a recent hearing that these coins represent a "parallel economy" and a "danger" to the country's economy.
Kant highlighted the contradiction of taxing crypto at 30% without proper regulation. In response, the Additional Solicitor General of India indicated that the government might consider reviewing its current cryptocurrency regulation. This followed a May 5 hearing where lawyer Mahesh Jethmalani claimed Bitcoin is widely used, even for buying cars in Europe, and incorrectly stated that Satoshi Nakamoto was Japanese.
Kant also voiced concerns about the potential misuse of cryptocurrencies for illegal activities. Despite taxing gains and requiring firms to report activities, India has yet to introduce comprehensive crypto legislation. This regulatory gap has drawn criticism from both the industry and policymakers.
This article is based on our author's analysis of materials taken from the following resources: LawChakra.