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Key Takeaways: India’s Supreme Court has warned that unregulated crypto is forming a dangerous “parallel economy”. Justices criticized the government for taxing crypto at 30% without providing a regulatory framework. Pressure mounts on Indian authorities to introduce clear crypto laws amid rising use and fraud cases. The Supreme Court of India is getting involved in the dispute over digital assets and is asking the government to quickly regulate cryptocurrencies like Bitcoin. The move follows repeated concerns over economic risks, fraud cases, and the contradiction of taxing unregulated assets. Read More: India’s Supreme Court Registers Landmark Crypto Petition Amid Legal Uncertainties Supreme Court Raises Alarm Over Crypto’s Economic Impact India’s Supreme Court strongly condemned how the country has handled digital currency during a recent hearing about a crypto fraud case. Justice Surya Kant warned that cryptocurrencies are making a “parallel economy” and are a huge risk to the stability of the country’s economy. The bench asked the administration, “You are taxing crypto at 30%, but there is no regulatory framework.” How can something be taxed but not run? This mismatch has generated a lot of trouble in India’s legal and financial fields. The justices asked Additional Solicitor General Aishwarya Bhatti for more information, and she indicated she would contact policymakers for more help.This might include a prospective review. Lack of Regulation Despite Heavy Taxation India imposes one of the world’s heaviest tax burdens on crypto investors: Flat 30% tax on capital gains from crypto trades 1% TDS (Tax Deducted at Source) on every transaction No offset allowed for crypto-related losses Despite this, cryptocurrencies are still not legally recognized as assets or currency, nor are they banned. The result is a gray zone that has allowed fraudsters to exploit the system, while legitimate users face uncertainty. The court emphasized that if digital…

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Filed under: News - @ May 20, 2025 6:20 pm