Supreme Court India refused to consider a presentation that seeks the creation of a regulatory structure for digital assets, according to Media reports.
During the hearing, the bench, consisting of justice BRAI and Augustine George Masih, made it clear that the court could not intervene in matters that fall under the legislature’s and the CEO.
By representing the petitioners, the lawyer emphasized the growing number of complaints about “Cryptocurrency” transactions submitted throughout the country. Petition urged the court to lead the central government to formulate and implement specific regulations for Digital currenciesGiven the current absence of dedicated laws in this space.
However, justice questioned the jurisdiction of the court on such issues. The bench repeated that the subject of the petition meant legislation and executive discretion, and therefore the judiciary had limited scope for intervention. As a result, the court chose not to recognize the foundation.
Nevertheless, the justices prevailed that they were free to submit their concerns and proposals to the India government. They can present a formal representation to the appropriate government authority for further consideration if desired.
In December 2024, the Indian government announced that there is no fixed timeline to introduce extensive regulatory guidelines for virtual digital assets (VDA) in the country. As a result, the legal status of the digital currency continues to be in Limbo, without any specific legislation that regulates digital currency -based companies in the country.
The Supreme Court’s direction comes when India, the world’s largest democracy, has turned a deaf ear to the digital asset industry’s requests to reduce the taxation of digital access trade.
India’s digital asset change landscape is prepared for Large consolidation 2025With smaller platforms that are expected to either cease operations or merge with major competitors. This shift is largely run by the country’s strict tax policy for Cryptocurrencies and other digital assets. Since April 2022, a flat 30% tax has been levied on all digital asset income, and from July 2022, a 1% tax deducted at the source (TD) has been applied to transactions exceeding $ 10,000 (about 117 US $). In addition, traders cannot compensate for losses against profits, which further tightens the financial load.
According to a study By Esya Center, a New Delhi-based Policy Tank Tank, these tax measures can result in an estimated loss of $ 1.2 trillion in trading volume on Indian exchanges in the coming years. The study also notes that approximately $ 3.85 billion in digital asset trading activity has already been moved to foreign platforms, as investors are trying to escape India’s harsh tax environment.
In response has the domestic web3 industry repeatedly urged the government To introduce fairer regulations for virtual digital assets (VDA). Their proposal includes reducing the TDS interest rate from 1% to 0.01%, which allows shift and forwarding of losses and adjusting the taxation of VDA to it for other capital assets. Despite these appeals, the government has Yet to respond or implement any changes.
Sumit Gupta, co -founder of Coindcx, India’s first unicorn of digital currencysaid in an e-mail: “India stands at an important road crossing in the global digital asset economy. With its technical knowledgeable youth, thriving developer base and increasing crypto adoption, the country is well positioned to lead the web3 revolution.”
“But in order to convert this potential into permanent leadership, regulatory clarity is now absolutely necessary. A structured discussion document-to carry out regulatory goals, risks and road-must be the first step. Equally essential is the creation of the multi-law round table involving RBI, Sebi, Meity and FIU to institutionalize dialogue and secure dialogue and secure dialog
In July 2024, Coindcx listed BSV -Token for trading on their platform, which means that users can have more ways to buy, sell and trade BSV. With CoindCX close to 15 million registered users, the list marks a significant expansion to the Indian market for BSV and demonstrates its Potential and opportunity in the region.
“Extending regulatory sandboxes to include cryptout exchanges, Stablecoin pilots and new defi applications will promote innovation while handling systemic risk. The United States has shown that credible frameworks will start with open and inclusive consultation. India must act as a decision or risk closing its first mover, allocation with more comparison with more altitudes.
Wazirx Related on the track
WazirxOnce India’s largest Digital Asset Exchange With trade volume, which was hit by a hack of $ 234 million in July 2024, has announced that it is prepares to resume businessIn anticipation of a court decision on May 13 on its proposed restructuring and compensation plan for the users concerned.
In an update that was shared on April 21Wazirx stated that if Singapore High Court approves the plan, its parent company, Zettai Pte Ltd, will restart the platform and initiate user repayments within ten working days after the decision.
“We understand zeal around the platform’s restart and really appreciate your continued patience. Since the beginning we have communicated that the first distribution and restart would occur within the window in April – May 2025,” said Wazirx.
“While we have worked to stay in line with the previously shared lines, court proceedings work independently, and we respect that process. After the system has sanctioned, the first distribution and restart will follow within ten working days from the date of effective system, as described earlier,” added Wazirx.
The violation occurred in mid -July 2024 when approximately $ 234 million in digital assets were emptied from a secure multi -wallet. North Korea’s Lazarus Group was responsible for the Wazirx hack. After the attack, Wazirx was forced to temporarily interrupt both “Cryptocurrency” and Indian Rupie withdrawal as a precautionary measure.
Counteracts terrorism financing through ‘Crypto’
At the same time, India organized the Ministry of Income (DOR), in collaboration with the Ministry of External issues (MEA) and the National Security Council Secretariat (NSC), the first capacity building program for central Asian Republics (cars) to counteract financing of terrorism (CFT) through cryptokencies, CRYPEENCES, CRYPEENCES, CRYPEENCES, CRYPEENCES, CRYPEENCES, CRYPEENCES, CRYPEENCES, CRYPEENCES.
To bring together senior officials from five Central Asian countries – Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan and Kyrgyzistan – provided the initiative a strategic platform to promote regional cooperation and share expertise to fight terrorism financing, one statement by the Ministry of Finance.
The program contained a comprehensive series of sessions led by Indian government agencies, including Cell (Financial Action Task Force (FATF) under the Ministry of Income, Income Ministry, National Investigation Agency (Nia) and Entity of Financial Notice – India (FIU-Ind). A Eurasian group (EAG) expert, a regional body modeled on FATF, also contributed critical perspectives on anti-money washing and counteracts the financing of terrorism (AML/CFT), in particular regarding non-profit and virtual digital assets.
The initiative is adapted to deal with the challenges facing the Central Asian region and aimed at improving technical capacities and improving awareness of developing threats linked to terrorist financing. By engaging discussions, practical case studies and the exchange of best practice, the program encouraged a united strategy for dealing with these pressing security issues.
The technical sessions covered a wide range of subjects, such as utilization of financial intelligence in investigations of terrorism, the increasing abuse of virtual asset service providers (VASP) and the role of online crowdfunding in financing illegal activities. Additional focus areas included the financial roads that support radicalization and utilization of non -profit organizations (NPO) for extremist purposes.
Watch: Explore use cases for blockchain in India
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