Key Takeaways:
India’s Supreme Court has duly registered a criminal petition concerning crypto trading.The petition is worried about the lack of a regulatory framework for crypto activities in India.The judiciary made clear that legislative bodies, not courts, need to establish clear crypto regulations.Crypto exchanges, influencers, and investors in India are watching the case closely for future developments.
A Judicial Watershed Moment for India’s Crypto Story
India’s Supreme Court made the headlines on April 15, 2025, by officially registering a criminal petition pertaining to cryptocurrency. Filed by a petitioner who is currently in custody for alleged crypto crimes, the case has sparked fierce debate in India’s crypto circle. The petitioner argues that the lack of regulatory clarity on crypto trading and mining has directly led to the criminal case against him. Accordingly, the petition is not just a defense tactic but a broader call for judicial notice of the country’s crypto void.
This is one of the first high-profile cases in which the Supreme Court has agreed to take up a criminal case that involves crypto-related activity in India. The move was covered by several local sources, with Crypto India and other members of the community noting the importance of the move.
The Petition: More Than an Individual Appeal
Although the petition is brought by a single accused party, its implications go far beyond individual legal recourse. The petitioner argues that the absence of any material law governing crypto transactions in India has resulted in selective and arbitrary enforcement. They claim this has created confusion amongst law enforcement officials, investors, and even the courts.
Some of the significant arguments in the petition:
There is no specific law that makes cryptocurrency trading or mining illegal in India.Enforcement agencies are citing outdated or vague provisions to file charges.The lack of legal clarity is fertile ground for confusion and arbitrary arrests.
The Court’s Response: Legislative and Judicial Boundaries
The Supreme Court, during the initial hearing, acknowledged the concerns involved but also indicated that the court too has its limitations. Chief Justice D.Y. Chandrachud and the hearing bench noted that policy-making falls within the realm of the legislative and executive branches of the government. The court reiterated that judicial interpretation has its own role to play but cannot fill in for the need for concrete law-making on the part of Parliament.
A History of Regulatory Uncertainty
India’s relationship with crypto has been tense for some time. In 2018, the Reserve Bank of India (RBI) implemented a banking ban on crypto transactions, citing systemic risk and fraud as justification. That was overturned by the Supreme Court in 2020, which stated that the RBI circular was “disproportionate.”.
Regulatory ambiguity has persisted ever since. While the Indian government has instituted a tax regime on digital assets — for instance, a 30% capital gains tax and a 1% TDS on all crypto transactions — it has not passed any comprehensive crypto law. Indian crypto holders therefore operate in a gray area, allowed technically to possess and trade assets but without any legal protection or framework to defend them.
Exchanges like WazirX and CoinDCX have always requested a definite framework that’s aligned with global standards. The same has been echoed by influencers and developers, requesting clarity so as to not face unjust prosecution or censorship of innovation.
Why Crypto Community Is Closely Observing
The filing of this petition has sent shockwaves across India’s crypto ecosystem. Community leaders have taken to social media, hoping that the case will nudge the government into action. Crypto India, a well-known influencer, said that this has the potential to become a watershed moment in the way India regulates crypto.
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