20-5-2025 – India’s Supreme Court has castigated the central government for its sluggish pace in crafting a robust regulatory framework for cryptocurrencies. On 20 May 2025, the court drew a sharp parallel between unregulated Bitcoin trading and the shadowy practices of hawala, an informal money transfer system often linked to illicit activities. The justices underscored the urgent need for stringent oversight to curb potential misuse and safeguard the nation’s economic stability, pressing authorities to swiftly establish comprehensive guidelines.
The court’s admonition highlighted a glaring contradiction in the government’s approach. While imposing a hefty 30% tax on cryptocurrency transactions, the authorities have yet to provide clear regulatory directives. Justice Suryakant pointedly remarked that taxing digital currencies implicitly acknowledges their legitimacy, making the absence of regulation all the more indefensible. This critique coincides with ongoing probes into illicit crypto activities, including a high-profile case against Shailesh Babulal Bhatt, accused of extorting vast sums in cryptocurrencies and cash.
Compounding the issue, the Supreme Court dismissed a ₹2,000 crore claim linked to the WazirX hack, citing the persistent lack of a clear crypto regulatory framework. Victims seeking recourse were directed to approach the Reserve Bank of India, the Securities and Exchange Board of India, or the Central Bureau of Investigation—agencies that have long sidestepped accountability for crypto-related matters. This regulatory vacuum is driving a marked shift among India’s wealthiest investors, who are increasingly shunning volatile assets like cryptocurrencies and gold.
According to luxury real estate advisor Aishwaraya Shri Kapoor, the nation’s ultra-wealthy, representing the top 0.001%, are channeling investments into high-value real estate, with portfolios ranging from ₹75 crore to ₹500 crore. These include premium land parcels, branded residences, pre-leased commercial properties, opulent penthouses, and heritage estates in major Indian cities and overseas markets. For these high-net-worth individuals, such investments offer not only lucrative returns but also capital preservation, liquidity security, and access to exclusive resale networks, reflecting a strategic pivot towards stability in an uncertain financial landscape.
