Shilpi Nama
On 19th May, 2025, the Supreme Court raised questions regarding the absence of regulatory measures for cryptocurrency. While presiding over the case of Shailesh Babulal Bhatt v. State of Gujarat & Another, a Bench comprising Justice Surya Kant and Justice NK Singh remarked that there is no proposal to completely ban cryptocurrency, as such a move may not be prudent for the economy. However, they underscored the necessity for regulatory frameworks and oversight.
The Court stressed that the issue of cryptocurrency regulation should be addressed in consultation with experts, rather than through a blanket ban that may ignore global realities. It noted that with evolving international trade mechanisms, regulatory steps and oversight are necessary despite the Court not being expert in the field.
The Court further observed that the existing taxation of Bitcoin trading profits at a rate of 30 percent suggests a degree of legal acknowledgment. The Court inquired, if it is recognized in this way, why not implement regulations?
In addressing Additional Solicitor General (ASG) Aishwarya Bhati, Justice Kant pointed out that courts have encountered practical difficulties in handling cases related to cryptocurrency. ASG Bhati responded that she would consult with the Central government regarding this issue.
The Court was reviewing a petition linked to allegations of fraud involving cryptocurrency across several States. The individual appearing before the Court was accused of kidnapping two employees of BitConnect in early 2018s and extorting 2,091 Bitcoins, 11,000 Litecoins, and 14.5 crore in cash from them, allegedly to recover losses from his investment in the now-defunct cryptocurrency platform, M/s. Bit Connect Ltd.
During a prior hearing, the Court inquired of ASG Bhati about the anticipated timeline for addressing these matters. She responded that a revised report regarding the progress of the investigation, together with the Union’s stance on cryptocurrency, would be provided by July. The Court observed that the broader question of a cryptocurrency policy could be addressed independently. It emphasized that the main concern should be the petitioner, as the records did not clarify whether he was a victim or a perpetrator.
The Court scheduled the case for another hearing on May 30 and instructed the Central Bureau of Investigation (CBI) to strive to finalize the further investigation by that date.
Case Name: Shailesh Babulal Bhatt v. State of Gujarat & Another
Case Number: Special Leave to Appeal (Crl.) No(s).4036/2025
Bench: Justice Surya Kant and Justice NK Singh
Instagram: Click here.
LinkedIn: Click here
For Collaboration and Business: info.desikaanoon@gmail.com
