'We Cannot Lay Down the Law', Says SC On Matters Of Cryptocurrency

The Supreme Court on Wednesday refused to hear a petition for clear regulations for cryptocurrencies, saying that such a decision is in the domain of lawmakers and government officials.
"We cannot Lay Down the Law," Says SC while giving his opinion in matters related to cryptocurrency. 

A Bench of Justices B R Gavai and Augustine George Masih heard the case. The petitioners had urged the court to order the central government to prepare clear guidelines for regulating cryptocurrencies in view of mounting complaints in India about fraud and abuse.

Justice Gavai asserted firmly, "It is in the domain of policymakers. How can we issue any such direction? We cannot lay down the law.” 
The Bench further added, "The prayers made in the petition are within the jurisdiction of the legislature and the executive. In that perspective of the case, we are not willing to entertain the petition."

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No Legal Recognition

India still lacks a special law governing such cryptocurrencies as Bitcoin and Ethereum. Though they have not been prohibited, they have not been officially accepted as legal tender either. Some regulatory aspects have been launched by the government, nonetheless.

Such sales of cryptocurrency attract a 30% profit tax, as well as 1% TDS (Tax Deducted at Source) on each transaction. Losses on crypto are not, however, allowed to be offset with other income.

Government's Stand

Since 2023, crypto exchanges in India have had to abide by anti-money laundering (AML) regulations. They have to authenticate users and inform the Financial Intelligence Unit (FIU) of suspicious behavior.

The Reserve Bank of India continues to advise investors about risks related to cryptocurrencies and encourages its central bank digital currency, the Digital Rupee. A draft crypto regulation bill was drawn up in 2021 but has not yet materialised.