The absence of rules to govern cryptocurrencies in India was a major focus of the Supreme Court on Monday, and they concluded that banning them was neither reasonable nor good for India’s economy. The bench, made up of Justice Surya Kant and Justice NK Singh, shared that a suitable way to manage cryptocurrencies is through meaningful regulations and a proper, strong system.
India’s Supreme Court had hinted at the need for crypto regulations before as well. While addressing Additional Solicitor General (ASG) Aishwarya Bhati, the bench questioned the government’s continued delay in creating a regulatory mechanism.
Justice Kant recalled a prior instance where the Attorney General had cited the global nature of crypto markets as a challenge to regulation, but the Court dismissed that as insufficient reasoning.
“Two years ago, I asked the Attorney General whether any regulatory steps were being taken. He responded with concerns about the international market. But times are changing, and new frameworks are emerging globally. Banning it would be like shutting your eyes to reality,” Justice Kant stated.
They noted that difficulties arise for courts handling litigation related to cryptocurrencies because the legislation surrounding these assets is not clear. A few people may ask Court tomorrow what this asset is. How are they able to make such rulings in the context of the law? Justice Kant highlighted the problems that arise from a lack of laws, particularly now.
ASG Bhati assured the court that she would obtain further directions from the central government regarding the formulation of a regulatory policy and would submit a progress report by July.
While noting that broader policy decisions could be taken up later, the Court stressed that immediate attention must be paid to the individual case at hand. With conflicting narratives around whether the petitioner is a victim or a perpetrator, the bench directed the Central Bureau of Investigation (CBI) to expedite its investigation.
“This policy debate can be addressed separately,” the bench remarked. “Right now, we need clarity on this individual’s role — whether he’s been wronged or is the one committing wrongdoing.”
The matter is scheduled for further hearing on May 30, with the CBI tasked with making significant progress in the investigation by then. Senior Advocate Siddhartha Dave and advocates Mohit D. Ram, Rajul Shrivastav, and Kishan Dhaiya represented the petitioner in court.
Also read: Crypto Surveillance Intensifies in India’s Border Areas
