India’s Supreme Court called current crypto laws outdated and pushed the government to act. It highlighted the legal grey area around Bitcoin and digital assets.
New Delhi: Today, On May 30, the Supreme Court of India said that the country’s current laws related to cryptocurrencies like Bitcoin are “completely obsolete.”
The top court also said there is a big “grey area” in how these digital currencies are being regulated and told the government to take steps to fix this issue.
A bench of Justices Surya Kant, Dipankar Datta, and Vijay Bishnoi was hearing a case linked to Shailesh Babulal Bhatt, a businessman from Gujarat.
He has been accused of being involved in several Bitcoin-related fraud cases across different states, as reported by media.
During the hearing, senior advocates Siddharth Dave and Mukul Rohatgi appeared for Bhatt.
They reminded the Supreme Court that it had earlier asked the Attorney General of India to come up with a proper regulatory system for handling cryptocurrencies.
Justice Surya Kant said,
“When we were asking them that have some regulatory mechanism, a very, very sweeping statement was made – ‘no, no, we are watching, we are looking at the international economic conditions’…”
This is not the first time the Supreme Court has pointed out problems with how cryptocurrencies are handled in India.
In earlier hearings, the court compared unregulated Bitcoin trade to hawala transactions. The court had also said that because there are no clear rules, people can easily misuse the system for illegal activities.
In November 2023, the Supreme Court had rejected a petition that asked for clear rules on cryptocurrency trading and mining.
The court said at that time,
“Parliament will do it, we will not issue any directions.”
Later, in January 2024, the top court gave the Union Government more time to explain its views on cryptocurrency-related matters, especially because many such cases are being heard in courts across different states.
In April 2025, a different bench of the Supreme Court said that this issue is more related to government policy and not something the court should decide.
The court also advised the petitioner to go to the proper authority for this matter.
Meanwhile, the Central Government is likely to release a discussion paper next month to look at different policy options for regulating crypto assets, according to media.
This paper is expected to explore how India can manage cryptocurrencies better and safely, especially since digital currencies are gaining popularity across the world.
This move comes after former US President Donald Trump recently showed public support for cryptocurrencies, which has increased their global acceptance.
As per the media report, the Indian government’s discussion paper will be based on studies done by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
It will also include ideas and suggestions from how other countries are regulating digital currencies.
An official told media,
“The discussion paper on crypto assets is being given finishing touches.” The official added that the paper could be shared for public comments as early as next month.
Click Here to Read Our Reports on Crypto Currency
