Here's Why India Won't Be Formulating a Crypto Law Just Yet: Navigating Uncertainty
India's crypto landscape remains shrouded in uncertainty. While global jurisdictions advance clear crypto regulations, India risks falling behind despite its digital prowess. The question doing the rounds now is whether the government will be forced to examine crypto regulation, finally putting to rest the uncertainty of India's position on the digital frontier. But why the delay?
Despite the buzz, a comprehensive crypto law in India remains elusive, at least for now. While India is formulating a framework for cryptocurrencies, until it is enacted, crypto is not yet illegal. In 2025, the government announced a flat 30 per cent tax on gains, signaling a complex stance: acknowledging crypto's existence while stopping short of full legal recognition.
The Supreme Court of India (SC) today refused to hear a plea for regulation of cryptocurrencies, according to a PTI report. It listed out the reasons for why the matter must wait, further pushing clarity down the road. The Supreme Court of India raised concerns over the government’s inaction on crypto regulation, questioning why it taxes assets like Bitcoin while leaving their economic impact largely unaddressed. This highlights a growing tension between revenue generation and responsible oversight.
Supreme Court Steps In: Silence is No Longer an Option The pressure isn’t just coming from the markets. India’s Supreme Court has strongly called out the government’s perceived inaction. This judicial scrutiny adds another layer of urgency to the situation.
Adding to the timeline is the upcoming India to release a crypto policy paper in June 2025. Is legal clarity finally coming? Here's what it means for crypto taxes, investors & Web3 adoption. This policy paper could be a crucial turning point, offering insights into the government's long-term vision. However, a policy paper isn’t a law, so uncertainty prevails.
So, while crypto enthusiasts eagerly await definitive legislation, the current landscape demands careful navigation. Keep an eye on the June 2025 policy paper, but remember that comprehensive legal clarity is likely still some time away.