India’s Supreme Court addressed the lack of explicit cryptocurrency regulations, emphasizing the need for a clear regulatory framework. The court referred to cryptocurrency trading as akin to a “hawala business” without such regulation.

Justice Suryakant criticized the imposition of a 30% tax on digital currencies without proper oversight, questioning the central authorities‘ hesitance to establish regulatory mechanisms. This ruling directly involves Justice Suryakant and Shailesh Babulal Bhatt.

The lack of regulation has driven some investors, specifically the ultra-wealthy, to transition from cryptocurrency to luxury real estate. This exposes the potential risks and uncertainties associated with crypto investments in India.

The court’s decisions could influence market stability, encouraging a shift in investment strategies. Advocates expect regulatory clarity to bolster market confidence, while critics caution against regulatory lag potentially harming growth. These perspectives are founded on recent market trends.

The court’s concerns echo past regulatory challenges in India, where cryptocurrency faced resistance akin to the early days of digital payments. Without regulation, these markets remain unpredictable.

Kanalcoin experts suggest that formal regulations could stabilize the market by addressing existing taxation contradictions and fortify investor protection, mirroring historical shifts in other emerging technologies.