Supreme Court Slams Bitcoin: Illegal Trade Threatens Economy

Summary: The Supreme Court of India declared Bitcoin trading illegal, comparing it to hawala transactions. The court criticized the government's lack of a clear cryptocurrency policy, emphasizing the potential economic risks. This landmark ruling calls for urgent government action to regulate the cryptocurrency market in India and protect the national economy from potential threats.

• Supreme Court deems Bitcoin trading illegal, similar to hawala.
• Government's inaction on cryptocurrency regulation criticized.
• Unregulated cryptocurrencies pose a threat to the national economy.
• Urgent need for a comprehensive cryptocurrency policy in India.
• Landmark ruling sparks debate on the future of cryptocurrency in India.

According to HeadlinesNows report, the Supreme Court of India has delivered a significant blow to the cryptocurrency market, declaring Bitcoin trading illegal and akin to hawala transactions.

A bench comprising Justices Surya Kant and N.

Kotishwar Singh issued a strong statement on Monday, highlighting the existence of a parallel, unregulated under-market for cryptocurrencies and its potential to destabilize the national economy.

The court directly questioned the central government's inaction, demanding clarity on why a comprehensive policy regulating cryptocurrencies hasn't been implemented despite previous requests.

The judges emphasized the urgent need for regulation, suggesting that a clear policy would allow the government to monitor and control the Bitcoin trade effectively, preventing its exploitation for illicit activities.

The court reminded the government that it had requested a statement of India's policy on digital currency nearly two years ago; the lack of subsequent action was deemed unacceptable and a serious oversight.

The government's representative, Additional Solicitor General Aishwarya Bhati, was directly addressed regarding this critical lapse in regulatory oversight.

The judgment underscores the potential risks associated with unregulated cryptocurrency trading in India, including money laundering and tax evasion.

The implications for investors and the future of cryptocurrency trading within the country remain uncertain, pending the government's response and the formulation of a clear regulatory framework.

The Supreme Court's ruling serves as a potent warning against the dangers of unregulated digital assets and the necessity for timely and decisive government action.

The ruling carries national significance and has sparked widespread debate concerning India's economic stability and the future of cryptocurrency regulations.

This landmark decision highlights the crucial need for proactive regulatory measures to protect the Indian economy from the potential risks posed by unregulated cryptocurrencies.

The Supreme Court's strong stance underscores the severity of the issue and the governments urgent need to address it effectively.

The case serves as a stark reminder of the importance of clear legal frameworks to regulate emerging technologies and safeguard national financial interests.

The impact of this decision on India's cryptocurrency landscape and future governmental regulations will be closely watched in the coming months and years.

Related: National News | Shivpuri News

Source: Dainik Bhaskar