Supreme Court Urges Regulation of Cryptocurrency in India

On May 2025, India’s Supreme Court pressed the government for clear cryptocurrency regulation, questioning its unregulated status.

The court’s statement highlights the need for economic oversight and potential regulation amid rising cryptocurrency activity.

Supreme Court Criticizes Lack of Cryptocurrency Regulation

India’s Supreme Court, involving Justices Surya Kant and N Kotiswar Singh, urged the government for a definitive cryptocurrency regulation policy. Concerns include impacts on the economy and illegal trade activities.

The court questioned why the government lacks clear regulations while taxing crypto heavily. Similar views were expressed in a 2020 ruling overturning an RBI bank ban.

Investor Uncertainty from Regulatory Ambiguity and High Taxes

The court’s demands create uncertainty for crypto exchanges and investors amid India’s high taxes. There are potential implications for economic oversight of cryptocurrency trade.

Financial impacts include depressed trading volumes and migration of transactions to P2P or offshore platforms. The high tax regime without clear regulations complicates investment decisions.

2020 Ruling Raises Hopes for Comprehensive Policy

Previously, in 2020, the Supreme Court overturned an RBI circular, noting a lack of comprehensive regulation since then. The situation contrasts with some jurisdictions that enacted outright bans.

Experts suggest developing a legal framework to balance regulation and taxation could stimulate growth while curbing illegal activities. Potential outcomes hinge on the government’s policy response.

Justice Surya Kant, Supreme Court of India, stated, “Why does the Centre not come out with a clear-cut policy on regulating cryptocurrency? There is a parallel under-market for it and it can affect the economy. By regulating the cryptocurrency, you can keep an eye on the trade.”