India’s Supreme Court Urges Crypto Regulation Amid Global Trends

India’s Supreme Court has issued a stern rebuke to the central government, highlighting the urgent need for cryptocurrency regulation in light of global trends and recent incidents in the country.

• India’s Supreme Court criticizes lack of crypto regulation
• Urges regulation over ban, cites global trends
• WazirX hack and BitConnect fraud cases highlight need for clarity
• Bitcoin’s price surge underscores crypto’s growing role

The Supreme Court, led by Justices Surya Kant and N Kotiswar Singh, has made it clear that the government’s inaction on cryptocurrency regulation is no longer tenable. “Banning crypto is not the solution, but regulation is urgently needed,” they stated during a recent hearing. This isn’t just a slap on the wrist; it’s a wake-up call for the government to stop dragging its feet. The justices aren’t claiming to be crypto experts, but they know enough to see that some regulatory oversight is necessary. As Justice Kant put it, “We aren’t experts. Experts would examine it, but some steps to regulate it and keep an eye on it are necessary.”

The global context is also pushing India’s hand. While the country’s leaders ponder over what to do, the rest of the world isn’t waiting around. The US Senate, for example, has moved forward with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, aiming to create a federal regulatory framework for stablecoins. Stablecoins, for those new to the crypto space, are cryptocurrencies designed to maintain a stable value, often pegged to a currency like the US dollar. Meanwhile, the European Union is implementing the Markets in Crypto-Assets (MiCA) regulation, which seeks to standardize crypto-asset regulation across its member states. MiCA, in case you’re wondering, stands for a comprehensive set of rules aimed at bringing clarity and security to the crypto market.

The practical challenges faced by Indian courts due to the absence of a regulatory framework are glaring. Justice Kant highlighted this issue, saying, “Tomorrow, somebody will ask me, you please prove—what is the asset? How are we going to prove it?” This question isn’t just rhetorical; it’s a real problem that courts face daily as they try to navigate the murky waters of crypto-related cases.

Two recent incidents in India underline the chaos caused by the lack of regulation. The $233 million hack on the WazirX exchange, one of India’s prominent crypto platforms, led to a class action lawsuit that was ultimately rejected by the National Consumer Disputes Redressal Commission (NCDRC) due to the lack of legal recognition for cryptocurrencies. The NCDRC, a consumer protection agency, couldn’t address the issue because, in the eyes of the law, cryptocurrencies aren’t yet recognized as legal tender or a permitted investment asset. Meanwhile, the Supreme Court is involved in a case involving Shailesh Babulal Bhatt, accused of extorting cryptocurrencies and cash from BitConnect employees. BitConnect, a now-defunct platform, was embroiled in a massive fraud case, and the Central Bureau of Investigation (CBI) has been directed to complete further investigation by May 30.

Despite these challenges, the crypto market continues to flourish. Bitcoin, the flagship cryptocurrency, has seen its price surge from around $10,000 in 2018 to an all-time high of $109,114 in January 2025, and it’s currently trading at $105,161. The global digital assets market cap has also surged by more than 2% to $3.33 trillion, with a trading volume of $126 billion. These numbers don’t lie; cryptocurrencies are not just a fad but a growing force in the global economy.

The Supreme Court’s call for regulation aligns with a global trend that acknowledges the increasing role of cryptocurrencies. Ignoring this reality, as Justice Kant noted, would be akin to ignoring the future of finance itself. It’s like trying to stop the tide with a broomstick—futile and a bit silly.

As advocates for decentralization and the transformative power of cryptocurrencies, we must balance our enthusiasm with a pragmatic understanding of the challenges. Smart regulation is the key to fostering innovation while protecting consumers from the pitfalls of an unregulated market. It’s not about stifling the revolutionary potential of Bitcoin and blockchain technology but about ensuring that this potential can be realized in a safe and secure environment.

Here are some key takeaways and questions for our readers:

• What is the stance of India’s Supreme Court on cryptocurrency regulation?
  

  The Supreme Court has called for urgent regulation rather than a ban, criticizing the government for its inaction.

• What recent steps have the US and EU taken regarding cryptocurrency regulation?
  

  The US Senate voted to advance the GENIUS Act for stablecoin legislation, while the EU is implementing the MiCA regulation.

• How has the lack of regulation affected legal proceedings in India?
  

  Courts face practical challenges in handling crypto-related cases, as seen with the WazirX hack and the BitConnect fraud case.

• What was the outcome of the class action against WazirX?
  

  The NCDRC rejected the class action due to cryptocurrencies not being recognized as legal tender or a permitted investment asset in India.

• What is the current status of the BitConnect fraud case?
  

  The Supreme Court is hearing the case, with the CBI directed to complete further investigation by May 30.

• How has Bitcoin’s price changed from 2018 to now?
  

  Bitcoin’s price surged from around $10,000 in 2018 to an all-time high of $109,114 in January 2025, currently trading at $105,161.

• What is the current state of the global digital assets market?
  

  The market cap surged by more than 2% to $3.33 trillion, with a trading volume of $126 billion.

As we move forward, let’s remember that while the road to regulation may be bumpy, it’s a journey worth taking. After all, as the saying goes, “With great power comes great responsibility.” And in the world of crypto, that responsibility lies in creating a framework that can harness the power of decentralized technologies for the benefit of all.