Important takeaways:
- The Supreme Court of India has formally registered a criminal petition on crypto transactions.
- The petition worries about the lack of a regulatory framework for cryptographic activity in India.
- The judiciary made it clear that legislative bodies, not courts, need to establish clear cryptographic regulations.
- Indian crypto exchanges, influencers, and investors are watching the incident carefully for future developments.
Judicial forks in Indian Crypto Stories
The Supreme Court of India created a headline on April 15, 2025, by officially registering a criminal petition on cryptocurrency. The case, filed by a petitioner currently in custody on suspicion of a crypto crime, sparked a heated debate in Indian crypto circles. The petitioner argues that the lack of regulatory clarity regarding crypto transactions and mining has led directly to a criminal case against him. Therefore, the petition is not merely a defensive tactic, but a broader call for a country’s crypto blank judicial notice.
This is one of the first well-known cases the Supreme Court agreed to carry out a criminal case in India that involves cryptography-related activities. The move has been covered by several local sources, with India and other members being encrypted Community keeps an eye on the importance of the movement.
Petition: More than an individual complaint
The petition is brought about by a single defendant, but its meaning goes far beyond the individual legal measures. The petitioner argues that the absence of critical laws governing crypto transactions in India has resulted in selective and arbitrary enforcement. They argue that this has caused confusion among law enforcement officials, investors and even courts.
Some of the important discussions of the petition:
- There are no specific laws that make cryptocurrency trading or mining illegal in India.
- The executive body cites outdated or vague provisions for filing fees.
- The lack of legal clarity is a fertile basis for confusion and arbitrary arrests.
Court Response: Legislative and Judicial Boundaries
The Supreme Court acknowledged the concerns involved during the initial hearing, but indicated that the court also had that limitation. Prime Minister Dy Chandrachud and the hearing bench pointed out that policy decisions are within the territory of the legislative and administrative sectors of the government. The court reiterated that judicial interpretations play their role, but cannot be filled out due to the need for concrete legal production on the part of Congress.
History of regulatory uncertainty
India’s relationship with crypto has been tense for a while. In 2018, the Reserve Bank of India (RBI) implemented a banking ban on crypto transactions, citing systemic risks and fraud as justifications. It was overturned by the Supreme Court in 2020, saying the RBI circular was “disproportionate.”
Since then, regulations have been ambiguous. The Indian government has established a tax system on digital assets, but for example, a 30% capital gains tax and a 1% TDS in all crypto transactions have not been implemented with a comprehensive cryptographic method. Therefore, while Indian crypto holders operated in grey areas, they were able to technically own and trade assets, but there was no legal protection or framework to protect them.
Exchanges like Wazirx and CoindCX have always requested a clear framework to match global standards. The same is reflected in influencers and developers, explicitly demanding that they do not face unfair prosecution or censorship of innovation.
Why the crypto community is closely observing
The petition has sent shockwaves throughout India’s crypto ecosystem. Community leaders have taken to social media in hopes that the incident will drive the government into action. Famous influencer Crypto India said this could be a fork moment in the way India regulates cryptography.
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Disclaimer: Includes third-party opinions. No financial advice.
