India’s Supreme Court has directed regulatory bodies to develop clear guidelines for governing crypto activities in the country, according to a May 20 report from local outlet Bar and Bench.
According to the report, the apex court emphasized that regulators should focus on establishing oversight frameworks that reflect the rising adoption of digital assets across the country rather than pursuing a ban.
The judges also pointed to India’s 30% tax on crypto gains as evidence that the asset class is already woven into the financial ecosystem. With that in mind, they pressed for thoughtful governance that supports innovation while safeguarding investors.
To move things forward, the court has asked regulators to work alongside technical experts to craft a framework that supports the sector’s proper functioning.
Following the court’s directive, Sumit Gupta, co-founder of CoinDCX, revealed that a multi-agency task force has been set up to lead the regulatory conversation. This group is preparing a discussion paper that will likely shape future crypto policies.
Gupta expressed optimism that regulatory clarity could catalyze India’s digital economy. According to him, industry projections suggest that Web3 and crypto could add $1.1 trillion to India’s GDP by 2032 if the environment becomes more supportive.
India’s crypto regulatory efforts
The Supreme Court ruling reflects recent efforts by the authorities to bring the emerging industry into regulatory compliance.
In February, Economic Affairs Secretary Ajay Seth confirmed that India was reviewing its stance on crypto to align with US and European policy developments that lean toward measured regulation instead of outright bans.
At the same time, the government has strengthened its tax framework for digital assets by mandating that crypto firms disclose detailed transaction records. These include asset classifications, counterparties, and other key information required for tax compliance.
These moves are unsurprising considering India ranks among the top five countries for global crypto adoption, according to blockchain analysis firm Chainalysis.
Chainalysis stated:
“India’s path to crypto adoption is becoming clearer, due to continued engagement between the industry and regulators.”
Credit: Source link