On May 20, 2025, India’s Supreme Court pressed the government for a robust regulatory framework for cryptocurrency, highlighting the contradictions in taxing cryptocurrencies without clear guidelines.
This development underscores the urgency for regulation in light of ongoing fiscal policies and market shifts, influencing investors and market behavior.
Supreme Court Labels Cryptocurrency Unregulated “Hawala Business”
India’s Supreme Court addressed the lack of explicit cryptocurrency regulations, emphasizing the need for a clear regulatory framework. The court referred to cryptocurrency trading as akin to a “hawala business” without such regulation.
Justice Suryakant criticized the imposition of a 30% tax on digital currencies without proper oversight, questioning the central authorities‘ hesitance to establish regulatory mechanisms. This ruling directly involves Justice Suryakant and Shailesh Babulal Bhatt.
Wealthy Investors Shift from Crypto to Luxury Real Estate
The lack of regulation has driven some investors, specifically the ultra-wealthy, to transition from cryptocurrency to luxury real estate. This exposes the potential risks and uncertainties associated with crypto investments in India.
The court’s decisions could influence market stability, encouraging a shift in investment strategies. Advocates expect regulatory clarity to bolster market confidence, while critics caution against regulatory lag potentially harming growth. These perspectives are founded on recent market trends.
Cryptocurrency Faces Challenges Echoing Early Digital Payment Days
The court’s concerns echo past regulatory challenges in India, where cryptocurrency faced resistance akin to the early days of digital payments. Without regulation, these markets remain unpredictable.
Kanalcoin experts suggest that formal regulations could stabilize the market by addressing existing taxation contradictions and fortify investor protection, mirroring historical shifts in other emerging technologies.
Justice Suryakant, Supreme Court of India, emphasized the necessity of monitoring and controlling digital currencies effectively, urging central authorities to expedite the creation of comprehensive regulations.
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