The Supreme Court of India has questioned the lack of clarity of government regulation on cryptocurrencies despite taxation on digital ownership such as Bitcoin.
According to Indian Legal News Outlet Lawchakra, the country’s Supreme Court has expressed concern over the increasing use of Bitcoin (BTC) and other cryptocurrencies, which remains irregular.
“This is a whole parallel economy running such coins, and it is a risk to the country’s economy,” Justice Surya Kant reported at a recent hearing in connection with an ongoing investigation into a Bitcoin transaction.
Kant said that while the government implemented the crypto taxation, it failed to repair the space.
“If you can tax it at 30%, please fix it as well because you recognize it by taxing it,” the judge said.
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The government said the review could be followed
Additional Solicitor General of India – an old legal official who represents the Indian government – reportedly responded to the request by saying that the government will “take instructions, my master,” suggesting that the government may consider reviewing the country’s current cryptocurrency regulation.
The report complies with May 5 Hearing Through the Supreme Court where Kant and lawyer Mahesh Jethmalani shared their views on cryptocurrency. Jethmalani said Bitcoin is already using worldwide, mentioned that “in Europe, you can walk in a car showroom and buy a car with only one bitcoin.”
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While this situation is not as common as this statement suggests, Purchase A car with bitcoin possible with expert sellers. The lawyer also showed that he could not understand the pseudonymous nature of Bitcoin’s creator Satoshi Nakamoto, claiming he was from Japan:
“It was created by someone from Japan using a fake name.”
Misuse
Kant also expressed concern for the misuse of cryptocurrencies. He said “there are some systems of policies that apply here.”
Kant also said “some Bitcoins are real, but some may not.” However, it is unclear whether he wants to suggest that fake bitcoins are in circulation (none) or that illegal activities are hurting some.
The latter appears likely because the statement was followed by the judge who said “it has also been a possible way to do illegal business.”
The Indian government has not yet introduced the comprehensive law to manage cryptocurrencies, even the taxes it has acquired and requires companies to report some activities to financial regulators. Lack of regulation has drawn criticism from both industry and policy amid continuous asset class growth.
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