During a recent hearing, lawyer Mahesh Jethmalani noted the growing global acceptance of Bitcoin, citing its use in car purchases in Europe, although this practice remains limited.

India’s Supreme Court has urged the government to provide regulatory clarity on cryptocurrencies, highlighting concerns over their unregulated use despite existing taxation on digital assets like Bitcoin.

Justice Kant criticized the Centre for its lack of a defined stance on cryptocurrency, warning that unregulated trading could pose risks to the economy.

During a recent hearing, Justice Kant emphasized the need for regulation, noting that the government has acknowledged cryptocurrencies through taxation.

The Court stated that an outright ban on cryptocurrencies would be unwise, given the evolving financial mechanisms in global trade, but stressed that regulation is essential.

The Reserve Bank of India has warned about the risks associated with crypto investments while promoting the Digital Rupee, a central bank digital currency.

Crypto firms in India are required to comply with anti-money laundering regulations and register with the Financial Intelligence Unit to operate legally.

A discussion paper from the finance ministry is forthcoming, which aims to clarify the status and regulation of virtual digital assets in India.

A senior official indicated that delays in regulatory clarity are partly due to reviewing the impact of more favorable crypto policies from the U.S. government.

The Supreme Court previously directed the Centre to clarify the legality of cryptocurrency trading in India, following the quashing of a Reserve Bank of India circular that restricted such activities.

The Central Bureau of Investigation has been instructed to finalize its investigation into a crypto fraud case by the end of May 2025.

A draft bill to regulate cryptocurrencies was prepared in 2021 but has yet to be presented in Parliament, reflecting ongoing delays in regulatory action.