India’s crypto debate has intensified after the Delhi High Court issued a stark warning: cryptocurrency could undermine national monetary stability. In a July 14 ruling, Justice Girish Kathpalia stated that digital asset transactions risk converting recognized currency into untraceable funds, threatening the foundations of the country’s economy.
The comments came during the denial of bail to a businessman linked to a crypto-fueled corruption case. The court cited the accused’s involvement in over a dozen similar scams, reinforcing concerns about the rising misuse of digital assets. According to the judge, crypto poses “profound implications” for India by enabling the “dissolution of recognised money into the dark, unknown and untraceable money.”
This decision reflects growing judicial discomfort with the largely unregulated crypto space. By framing cryptocurrencies as a systemic threat, the court has signaled a potential shift toward stricter oversight and legal scrutiny.
While owning and trading crypto remains legal in India, it is not recognized as legal tender. The government has imposed a 30% capital gains tax, 1% TDS, and mandatory exchange registration with the Financial Intelligence Unit. Recently, the Supreme Court also criticized the government’s regulatory inaction, comparing unregulated crypto to an advanced form of “Hawala.”
Amid global calls for stronger oversight, Finance Minister Nirmala Sitharaman has urged international cooperation on crypto rules—a theme India emphasized during its G20 presidency. In the meantime, exchanges like Bybit are now applying India’s 18% GST on crypto trading fees, signaling a stricter fiscal approach even in the absence of dedicated legislation.
Source: news.bitcoin.com
Published: 2025-07-15 04:30:00
