Regulate crypto, don’t ban it, Indian Supreme Court says

The Supreme Court of India has recommended that instead of imposing a ban, cryptocurrencies should be regulated in the world’s most populous country. Given that the intricacies of the crypto world may be beyond a judge’s expertise, the court emphasized the need for specialist consultation to aid the government in crafting effective regulations for the crypto industry.

This viewpoint surfaced during a discussion between Justice Surya Kant and Justice NK Singh as they reviewed a crypto fraud case involving a man accused of kidnapping two employees from BitConnect in 2018.

BitConnect, a cryptocurrency platform running between 2016 and 2018, attracted investors with promises of high returns on Bitcoin investments. The platform claimed it could offer daily profits of up to 1% if users lent them their Bitcoin.

Following the launch of its own token, BCC, which peaked at over $400, BitConnect came under legal scrutiny by authorities in Texas and North Carolina. This led to its closure, causing BCC’s value to plummet to almost nothing, resulting in investors losing hundreds of millions of dollars.

The defendant is accused of obtaining 2,091 Bitcoins, 11,000 Litecoins, and ₹14.5 crore in cash from his colleagues, aiming to recoup his losses after the platform’s collapse.

The Court inquired about the investigation’s findings and was informed that a report would be issued by July. This report will cover the case specifics and outline the government’s stance on cryptocurrency.

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The Court emphasized its immediate priority is resolving the case, with other crypto-related concerns to follow later.

“We need to address this individual’s actions first. From the available information, it’s unclear if he was deceived or played a deceptive role,” the judges remarked.

Simultaneously, India is among the top global holders of cryptocurrency. In 2023, its crypto market value reached approximately $221.5 million, with an anticipated growth rate of 6.75% annually up to 2029.

In 2024, India was the global front-runner in crypto adoption for the second year, with nearly 200 million crypto holders. Despite not giving full regulatory approval, the government has implemented a 30% tax on any profits realized.