Source: Cointelegraph
Original: “India's Supreme Court Urges Government to Regulate Cryptocurrency”
The Supreme Court of India has questioned the government's lack of regulatory clarity regarding cryptocurrencies while taxing digital assets like Bitcoin (BTC).
According to Indian legal news outlet LawChakra, the Supreme Court expressed concern over the growing use of Bitcoin (BTC) and other cryptocurrencies, which remain largely unregulated.
Supreme Court Justice Surya Kant reportedly stated during a recent hearing related to an ongoing investigation into Bitcoin transactions: “This is a completely parallel economic system operating, posing a threat to the national economy.”
Kant further pointed out that while the government has implemented tax policies on cryptocurrencies, it has failed to regulate the sector.
The judge remarked: “If you can tax it at a rate of 30%, then please regulate it as well, because you have acknowledged its existence through taxation.”
Reportedly, the Additional Solicitor General of India, a senior legal official representing the government, responded to this request, stating that the government “will take instructions, Your Honor,” suggesting that the government may consider reviewing its current regulatory policies on cryptocurrencies.
This report follows a hearing held by the Supreme Court of India on May 5. During the hearing, Justice Kant and lawyer Mahesh Jethmalani shared their views on cryptocurrencies. Jethmalani explained that Bitcoin is widely used globally and noted: “In Europe, you can walk into a car dealership and buy a car with just one Bitcoin.”
While this situation is not as widespread as his statement suggests, it is possible to purchase cars with Bitcoin at certain specialized dealers. The lawyer also displayed a misunderstanding regarding the anonymity of Bitcoin's creator, Satoshi Nakamoto, claiming he is Japanese:
“It was created by a Japanese person using a pseudonym.”
Kant also expressed concerns about the misuse of cryptocurrencies during the hearing. He stated: “There should be a certain set of rules applicable to this sector.”
Kant added: “Some Bitcoins are real, but some may not be.” However, it remains unclear whether he meant that there are counterfeit Bitcoins (which do not actually exist) in the market or that certain Bitcoins are tainted due to illegal activities.
The latter seems more likely, as the judge subsequently stated: “This has also become a possible way to conduct illegal transactions.”
The Indian government has yet to introduce comprehensive legislation to manage cryptocurrencies, although it taxes profits and requires companies to report certain activities to financial regulators. The lack of regulation has drawn criticism from the industry and policymakers due to the ongoing growth of this asset class.
Related: South Korean presidential candidate frontrunner proposes launching a won-backed stablecoin.
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