The Supreme Court of India has sought clarification from the government on the legality of cryptocurrencies in the country in the wake of surging Bitcoin scams, local media reported.
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- A bench comprising Justices D Y Chandrachud and Surya Kant asked additional solicitor general (ASG) Aishwarya Bhati to clarify the government’s stand on the use of cryptocurrencies in India.
- The Indian Supreme Court was hearing a matter relating to the GainBitcoin scam, which was an alleged fraud of 87,000 Bitcoins, valued at INR 20,000 crore (US$2.64 billion).
- Pradeep Gooptu, financial markets expert, told Forkast that a response from the government would provide clarity on classification, rules and regulations, tax payable on such transactions, as well as enhancing flexibility and sustainability of the industry.
- According to Chainalysis, crypto crimes hit a new high, with illicit addresses receiving US$14 billion in 2021 — a 79% increase from the previous year.
- An Indian national was indicted by the U.S. Department of Justice on Friday as the founder of BitConnect in a US$2.4 billion cryptocurrency scheme.
- Indian Finance Minister Nirmala Sitharaman announced a new 30% tax on crypto but has stressed that cryptocurrencies have not been legalized, while the central bank has continued to call for an outright ban.
See related article: India needs to make up its mind over crypto