The recent remark by the Supreme Court — comparing Bitcoin trading to a modern form of hawala — must be seen as a serious warning about the rapid and unregulated spread of cryptocurrency in India. This is not just a technical or financial issue; it points to a larger failure concerning law, security, and sovereignty.
Cryptocurrency usage in India has surged significantly, but this growth has not been matched by a clear or robust regulatory framework. As a result, digital currencies have become a tool in the hands of those who exploit its opacity to legitimize black money. There is neither a transparent surveillance mechanism nor a well-defined tax policy, which not only affects government revenue but also intensifies concerns around national security.
The Supreme Court’s description of crypto as a “new form of hawala” is not just a metaphor—it reflects a harsh ground reality. Digital wallets and untraceable transactions have made cryptocurrency appealing even to those entities that have traditionally avoided the formal banking system—be it organized crime or terror financing networks.
The irony is stark: while the government prepares to levy taxes on crypto transactions, there is still no solid legal structure in place. This leaves honest investors and tech startups working on blockchain innovation in a state of confusion and uncertainty.
Many countries across the globe are addressing this challenge with transparent and forward-thinking regulations. For a country like India, it is even more crucial not to fear new technologies—but also not to let them grow unchecked. The absence of regulation must not become the biggest weakness of our economic and security policies.
Now is no longer the time for debate—it is time for action. If hawala, tax evasion, and terror financing are thriving under the shadow of crypto, then a strong and immediate legal framework is not optional—it’s imperative. Letting the Supreme Court’s warning fade into the background would reflect poorly on our policymaking resolve—and the cost of such neglect may be paid by future generations.
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