Crypto Fraud Case: Banning cryptos is not an option, ask experts and regulate, says Supreme Court
Crypto Fraud News Update: In a significant development in cryptocurrencies, the Supreme Court has emphasised the need to regulate such currencies, stating that imposing restrictions on such securities is not an option. Ordering an expert probe into the subject, the apex court also said that it is essential that strong measures be taken to enhance surveillance in this regard. Read on to learn more about what the country’s top court said on cryptocurrencies such as Bitcoin.
)
07:46 PM IST
Big Crypto Fraud Update: In a significant development, the Supreme Court has highlighted the need to regulate cryptocurrencies in the backdrop of several instances of fraud reported in related technologies in several states. Stating that banning or restricting the use of cryptocurrencies is not a viable option to address the problem, the top court stated that crucial steps are needed to ensure stern surveillance on such technology.
Justice Surya Kant and Justice NK Singh said that the court is no expert in the matter, directing an expert investigation into the matter.
Blocking cryptocurrencies completely from the economy is not an intelligent solution to this problem, given that there is no suggestion so far to completely ban these securities.
The imposition of a 30 per cent tax on Bitcoin trading is in a way legal validation of such virtual currencies, said the bench.
Under the current tax laws in India, earnings arising out of trading in virtual digital assets (VDAs)—or cryptocurrencies such as Bitcoin—attract a 30 per cent tax. Meanwhile, the Union Budget for 2025-26 introduces stricter tax norms and guidelines for taxpayers engaged in cryptocurrency trading.
Bitcoin News | Why cryptos not regulated if they are already recognised, says top court
“If cryptocurrencies are already being recognised by the system, then how come they are not regulated yet?” asked the bench.
The courts are facing practical challenges in dealing with matters related to cryptos, said the judges.
The top court will hear the matter further on Friday, May 30.
Cryptocurrency News | RBI’s tough stance against cryptos
The banking regulator has time and again cautioned the public against the use of virtual currencies (VCs), with a stern warning that dealing in such currencies is associated with potential economic, financial, operational, legal, safety, and security-related risks.
It has also advised regulated entities to stay due diligence processes for transactions in virtual currencies, in line with rules laid out under Know Your Customer (KYC), Anti- Money Laundering (AML), Combating of Financing of Terrorism (CFT), Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA) laws.
Meanwhile, the finance ministry has also stated that any legislation for regulation or for banning cryptos can be effective only with significant international collaboration with thorough evaluation of the associated risks and benefits.
It has also maintained that given cryptos’ global operability, countries need to cooperate with one another to create consistent rules and prevent people from exploiting loopholes in different regulatory systems.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
)
Invested in crypto? Unaccounted income invested in virtual digital assets on radar, say sources
KALP launches $GINI on MEXC &BingX, unveils $GINI 250M grant program for RWA & DPI innovation
Predicting the $GINI Price Surge: Tokenomics designed for growth
Early access alert! Get $GINI tokens before 
Why $GINI is a promising token for diversifying crypto portfolios
