India’s Supreme Court has called on the central government to establish a clear regulatory framework for cryptocurrencies, expressing concern over the lack of oversight despite the imposition of taxes on digital assets. During a recent hearing, Justice Surya Kant highlighted the risks posed by unregulated cryptocurrency trading, likening it to a “parallel economy” that could endanger the nation’s financial stability.
The court’s remarks underscore the urgency for comprehensive legislation to govern the burgeoning crypto sector. While the government has implemented a 30% tax on crypto gains, it has yet to introduce specific laws to regulate digital currencies. This regulatory gap has raised concerns about potential misuse, including money laundering and other illicit activities.
In response to the court’s concerns, the Additional Solicitor General indicated that the government would consider reviewing its current stance on cryptocurrency regulation.
The Supreme Court’s intervention comes amid growing adoption of cryptocurrencies in India, despite the absence of clear regulatory guidelines. The court’s call for action may prompt the government to expedite the development of a comprehensive legal framework to address the challenges and risks associated with digital assets.
