India’s Supreme Court says Bitcoin trading is like a refined Hawala network

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com India’s Supreme Court has raised concerns over unregulated Bitcoin trading, comparing it to a refined form of Hawala during a recent bail hearing in a crypto-related case.According to local media, the observation came as the court questioned the absence of a clear regulatory framework for virtual currencies in the country. The bench, comprising Justices Surya Kant and N Kotiswar Singh, said the lack of formal rules around crypto assets had created uncertainty, leading to potential misuse.The remarks were made while hearing the bail plea of Shailesh Babulal Bhatt, who has been in custody since August 2023 for allegedly engaging in illegal Bitcoin trading.During the hearing, Bhatt’s lawyer, senior advocate Mukul Rohatgi, argued that Bitcoin trading is not illegal in India, especially after the apex court’s 2020 ruling that struck down the Reserve Bank of India’s ban on banking services for crypto platforms. Justice Surya Kant responded that his understanding of Bitcoin is limited but emphasised that, without regulation, Bitcoin trading closely resembles “a refined way of Hawala.” For those unaware, Hawala is an informal, often illegal, money transfer system that operates outside traditional banking channels.The bench further noted that this wasn’t the first time the issue had come before the court. Notably, in a similar case two years ago, the court had specifically asked the Centre to clarify its policy on virtual currencies. The case in question dates back to February 2022, when the Supreme Court was hearing a petition to quash multiple FIRs filed against an individual accused of duping investors through a Bitcoin scheme.However, Kant said, there had been no progress since then. The absence of any update, despite repeated calls for clarity, has left the judiciary in a difficult position when dealing with such matters, he implied.Despite the ongoing uncertainty, India has taken some steps toward oversight of virtual digital assets. A tax regime introduced in 2022 imposes a 30% tax on crypto profits and a 1% tax deducted at source on all transactions above a certain threshold.Beyond taxation, virtual asset transactions were brought under the Prevention of Money Laundering Act in March 2023. Many platforms, including Binance, KuCoin, and Coinbase, have since registered with India’s Financial Intelligence Unit to comply with local rules.However, a broader regulatory framework remains absent. In a December 2024 response to Parliament, the government said there is currently “no fixed timeline” for introducing comprehensive rules on virtual assets.As previously covered on crypto.news, Ajay Seth, Secretary of the Department of Economic Affairs, addressed the delay in releasing a cryptocurrency discussion paper, originally scheduled for September 2024, during a recent policy roundtable.With major economies like the U.S. revisiting their stance on crypto, following policy shifts under President Trump, Seth said India would need to reassess its approach as well.“We were ready with a discussion paper, but we now need to recalibrate it due to these changes,” Seth said at the time. Source link