- Indian Supreme Court nudged the central government to focus on crypto regulation.
- Lack of regulatory policies is causing Indians to shift to other forms of investment from crypto.
India is popular for its stringent stance on cryptocurrencies. Government officials have multiple times mentioned cryptocurrencies during Union budgets and imposed hefty taxes. However, the country has a huge number of crypto investors and developers, who contribute to its ecosystem.
The Supreme Court of India is involved in the matter today and has questioned the government about the lack of crypto regulation. It criticized the government’s failure to regulate digital assets despite imposing taxes on these assets.
During a hearing in the Supreme Court earlier today, Justice Surya Kant stated,
“This is a whole parallel economy running with such coins, and it is a danger to the economy of the country. If you can tax it at 30%, also please regulate it as you have recognised it by taxing it.”
The Supreme Court addressed this issue during a court hearing about an illegal Bitcoin transaction. It was trying to solve a case regarding a person named Shailesh Babulal Bhatt, who was alleged to have committed cryptocurrency and cash extortion.
Will the Indian Government Bring Crypto Regulation Anytime Soon?
Indian officials have been addressing cryptocurrencies for the past few years. However, they have always maintained a strict stance when it comes to crypto regulation. They assume the crypto industry is a threat to the economy, which clearly signals that there is a lack of education.
When the government made it difficult for crypto investors with hefty taxes of 30%, investors started to migrate to other countries. Even the crypto talent, such as startup founders and developers, are shifting offshore for better and favorable opportunities. If this continues, the country might lose out on one of the biggest opportunities to grow financially.
The crypto industry holds immense potential to change the face of the complete financial industry. However, it needs clear regulations in place for broader adoption and acceptance. The government might start stepping towards crypto regulation following the Supreme Court’s criticism over the Indian government’s lack of crypto regulation.
Several global countries have already started implementing clear regulatory policies for the crypto industry. Donald Trump’s presidency has further expedited this process in the US in efforts to make the country a crypto capital. It is high time the Indian government focused on regulating the crypto industry.
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