BENGALURU: With the Supreme Court emphasising the need for regulatory measures of cryptocurrency, crypto exchanges said well-structured regulations will not only safeguard investors but also empower crypto companies.
On Monday, the court said that if there is a 30% tax on crypto profits, why not regulate it.
The Supreme Court’s call for regulatory clarity in the crypto space is a pivotal moment for the Indian digital asset ecosystem. For crypto-INR futures traders in particular, a clear legal framework ensures market integrity, reduces counterparty risk, and boosts institutional participation — all essential for a healthy, scalable trading environment, said Avinash Shekhar, Co-Founder & CEO, Pi42, which is a Crypto-INR perpetual futures trading platform.
Exchanges point out that since the market for digital currency is expanding at a very fast pace, the requirement for open rules is being felt, so that the investors are protected and misuse -- money laundering and fraud -- is avoided. "The court highlighted the creation of an architecture of law that enables innovation but ensures the financial system and consumer welfare. Cryptocurrencies, although increasingly popular, are currently in India in a grey category where there are no law-making regulations that control their exchange or use,” said Siddharth Ugrankar, CEO & Co Founder, Qila.Io.
The Supreme Court appeal reflects growing concern regarding the volatility of these virtual currencies and the risks involved, he added.
In 2022, Finance Minister Nirmala Sitharaman announced in the Budget that any income from virtual digital assets will be taxed at 30% and also a 1% TDS on all crypto transactions.
India stands at a unique crossroads when it comes to crypto regulation, said Edul Patel, co-founder and CEO of Mudrex.
"With one of the world’s largest crypto user bases and a rapidly growing pool of blockchain innovators, India has the tech talent and entrepreneurial energy to lead. The right regulatory approach won’t just support domestic innovation, it could position India as the hub where the next wave of global Web3 solutions is born," he said. According to him, it has a potential to create 800,000 jobs by 2030.
Bitcoin Pizza Day
Meanwhile, Bitcoin Pizza Day, which is celebrated annually on May 22, marks the anniversary of the first real-world Bitcoin transaction. "What began 15 years back in 2010 as an extraordinary exchange of 10,000 BTC for two pizzas has become one of the most memorable and iconic stories in the crypto world," said Kushal Manupati, Regional Growth & Ops Lead of South Asia at Binance.
Today, Bitcoin stands as the world’s sixth-largest asset by market capitalization, according to CompaniesMarketCap. It serves as a reminder of the power of early innovation and the impact of belief in transformative technology. Its recent milestone of crossing $100K again further highlights Bitcoin’s evolution into a serious asset class, embraced by individuals, institutions, and even nations, said Raj Karkara, COO, ZebPay.