SC questions Centre for delay in crypto regulation

The Supreme Court on Monday questioned the central government's prolonged inaction on regulating cryptocurrencies and said that the absence of a clear legal framework has created a fertile ground for "misuse."

- Ayesha Arvind

NEW DELHI: The court also reiterated that unregulated Bitcoin trading was "nothing but a more polished form of Hawala," an informal and illegal method of transferring money across countries.

A bench of Justices Surya Kant and N. Kotiswar Singh made the remarks while hearing a bail petition filed by Gujarat resident Shailesh Babulal Bhatt, who has been accused of cryptocurrency-related fraud across multiple states. Though the bail plea itself was unrelated to broader policy matters, the bench expressed its concern over the lack of regulation in the cryptocurrency sector. It also questioned why the Enforcement Directorate, the prosecuting agency in the case, felt the need to arrest Bhatt after completion of its probe when it had not arrested him while its investigation was ongoing.