The Supreme Court on Monday, May 19, asked why no regulation is being made to govern cryptocurrency. An apex court bench comprising Justice Surya Kant and Justice NK Singh said that no one should give suggestions to halt cryptocurrency, as it would not be a good decision for the country's economy. However, a need for regulatory measures and oversight. The Court also reiterated that unregulated Bitcoin trading was “nothing but a more polished form of Hawala,” an informal and illegal method of transferring money across countries.
The bail petition was filed by Gujarat resident Shailesh Babulal Bhatt, who has been accused of cryptocurrency-related fraud across multiple states. Though the bail plea itself was unrelated to broader policy matters, the bench to expressed its concern over the lack of regulation in the cryptocurrency sector. It also questioned why the Enforcement Directorate, the prosecuting agency in the case, felt the need to arrest Bhatt after completion of its probe when it had not arrested him while its investigation was ongoing.
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"Why does Centre not come out with a clear-cut policy on regulating cryptocurrency? There is a parallel under-market for it and it can affect the economy. By regulating the cryptocurrency, you can keep an eye on the trade," the bench told Additional Solicitor General Aishwarya Bhati, who was appearing for the Centre.
Justice Kant added, "Trading in Bitcoin is an illicit trade, more or less like a Hawala business." Bhati requested to seek instruction on the matter. The top court was hearing a bail plea of an accused held in a case of illegal Bitcoin trade in Gujarat and said it could not ascertain whether he was a victim or victimiser. Bhati claimed the man was one of the biggest aggregators of Bitcoin trade in the state and victimised others by promising high returns, and even indulged in kidnapping.