India’s Supreme Court has intensified pressure on the government to establish clear cryptocurrency regulations, hearing petitions that challenge the Reserve Bank of India’s (RBI) restrictive policies. The court’s intervention comes as India’s crypto industry remains in regulatory limbo – neither banned nor fully legalized – creating challenges for exchanges, investors, and blockchain startups. “The government must take a definitive stand,” the bench remarked during proceedings, noting that prolonged uncertainty harms both innovation and consumer protection.
The hearing revisits India’s controversial 2018 RBI circular that effectively banned banks from servicing crypto businesses, later overturned by the Supreme Court in 2020. Despite this victory, the industry faces renewed anxiety as the government considers new legislation that could impose strict controls. Recent reports suggest policymakers are weighing a regulatory framework rather than an outright ban, potentially classifying cryptocurrencies as financial assets under securities laws.
Market analysts warn that continued hesitation could cost India its position in the global digital economy. “Every month of delay pushes talent and investment to crypto-friendly jurisdictions like Dubai and Singapore,” said local exchange founder Nischal Shetty. With over 15 million crypto users and $6 billion in trading volume, India represents one of crypto’s largest untapped markets – if regulators provide clarity. The Supreme Court’s intervention may accelerate long-awaited policy decisions as global crypto adoption surges.
