India’s Crypto Crackdown or Green Light? Policy Paper Drops Next Month After Supreme Court Push

After years of regulatory whiplash, India’s government is finally putting pen to paper—next month’s crypto policy draft could make or break the industry’s future in the world’s second-most populous market.

The Supreme Court isn’t waiting around: their ‘regulate, don’t ban’ ultimatum forced bureaucrats to accelerate timelines. Now, traders are left guessing—will New Delhi copy-paste the IMF’s playbook or pull a China-style 180?

One thing’s certain: whatever lands in June will send shockwaves through Mumbai’s crypto trading desks and Delhi’s power corridors alike. Just don’t expect tax officials to miss their cut—this is finance, after all.

Supreme Court Questions Government’s Failures to Regulate Cryptocurrencies

India’s Supreme Court publicly questioned the government’s lack of clear and appropriate cryptocurrency regulation despite imposing a massive 30% tax on assets like Bitcoin. According to reports by Indian legal news outlet LawChakra, the Supreme Court has concerns over Bitcoin’s and other cryptocurrencies’ increasing popularity and adoption and the lack of comprehensive regulation in the industry. 

In a recent hearing on the matter, Justice Surya Kant reportedly said:

“This is a whole parallel economy running with such coins, and it is a danger to the economy of the country.”

Justice Kant was critical of the government’s tax imposition and its lack of regulations. According to Kant, “ If you can tax it at 30%, also please regulate it as you have recognised it by taxing it.” 

Indian Government Will Reportedly Issue Crypto Policy Paper

In what is likely a response to the Supreme Court’s criticisms, India is reportedly preparing to issue a discussion paper on Bitcoin control next month, suggesting a positive shift to introduce a clearly defined policy framework for digital assets. Per a report by The Economic Times, India is recognising the rising relevance and adoption of digital assets. While India is a world forerunner in taxing cryptocurrencies, it has failed to join the global push for a clear and comprehensive digital asset regulatory framework. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.