Supreme Court Calls Bitcoin Trading the ‘Hawala of the Digital Age’

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In a moment of judicial brilliance, the Supreme Court of India has decided to equate Bitcoin trading with the illicit art of Hawala. The comparison was drawn during a particularly riveting bail hearing for one Shailesh Babulal Bhatt, who allegedly found himself dabbling in the dark underworld of Bitcoin transactions. The judges, no strangers to subtle criticism, also took a moment to scold the Indian government for its breathtaking lack of regulatory foresight on the subject of cryptocurrency.

“Ah yes, trading in Bitcoin—what could be more sophisticated than a modern version of Hawala? We don’t have any rules, of course, which naturally leads to rather concerning possibilities,” the bench observed with a mix of caution and sarcasm.

Now, before you think this is all an exaggeration, let’s look at the fine print: two years ago, another gentleman was caught up in a similar Bitcoin-related debacle, promising sky-high returns to investors, only to end up on the wrong side of the law. The court had, at that time, implored the government to step up and clarify its stance on cryptocurrencies. Yet, two years later, here we are—still waiting. Patience, it seems, is a virtue in short supply.

Enter Mukul Rohatgi, a senior lawyer and the voice of reason (or perhaps just legal optimism), who argues that Bitcoin is not, in fact, illegal in India. You see, the Supreme Court already tossed out the RBI’s circular that sought to ban banks from dealing in cryptocurrencies. Apparently, India’s legal system likes to keep its options open.

Government, Please Send Rules ASAP

Justice Surya Kant, in a moment of refreshing honesty, confessed his inability to fully grasp the mechanics of Bitcoin. Still, he’s adamant that the government needs to step in and provide some clarity, lest we find ourselves in a world where digital coins are as trustworthy as a piece of paper with a cat doodled on it. According to him, while some Bitcoins might be the real deal, others are nothing more than digital confetti.

Rohatgi, not to be outdone, pointed out that Bitcoin does have tangible value. After all, you can buy a car with one BTC in some parts of the world—a car worth ₹82 lakh, no less. Ah, the sweet scent of legitimacy!

The Gujarat government and ED, in a stroke of bureaucratic brilliance, requested more time, as this case allegedly extends beyond mere Bitcoin trading. They’ve been granted a 10-day extension. The next thrilling chapter of this saga will unfold on May 19. Meanwhile, Bhatt remains in jail, his bail request as elusive as a Bitcoin wallet password.

Regulation, Anyone?

India has made some half-hearted attempts at addressing the crypto conundrum. For instance, there’s now a 30% tax on crypto profits, and virtual asset transactions are now (somehow) linked to the Prevention of Money Laundering Act as of March 2023. But, let’s face it—what India really needs is a comprehensive regulatory framework that doesn’t make us all feel like we’re watching a poorly-scripted thriller. Will we ever get that clarity? Well, only time will tell. Until then, feel free to buy your car in Bitcoin… if you can.

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2025-05-06 13:55