Supreme Court Flags Regulatory Gaps in Cryptocurrency While Hearing Bitcoin Extortion Case

The Supreme Court has observed that cryptocurrency regulation in India falls into a “grey area” and current laws are “obsolete.”

The remarks came during a bail hearing in a Bitcoin extortion case involving Shailesh Babulal Bhatt.

A bench of Justices Surya Kant, Dipankar Datta, and Vijay Bishnoi criticised the lack of a clear legal framework, noting that unregulated crypto trading mirrors hawala systems and is prone to misuse. 

The Court urged the government to frame effective regulations, stating that while banning crypto would be unwise, immediate oversight is essential.