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Court Warns Crypto Could Undermine Monetary Stability in India

The Delhi High Court has issued a stark warning regarding the risks cryptocurrency poses to India's monetary stability.

Judge Girish Kathpalia articulated concerns that these digital assets could dissolve recognized currency into untraceable financial systems.

The court's remarks arose in the context of a bail denial for a businessman linked to a crypto-related corruption case, highlighting the severity of such allegations.

Justice Kathpalia emphasized that engaging in cryptocurrency transactions might contribute to the rise of "dark, unknown and untraceable money."

This ruling reflects increasing legal apprehension about the disruptive nature of cryptocurrencies and their potential to undermine legitimate financial structures.

The court's approach might signal a shift towards stricter regulatory oversight over digital currencies in India.

Although trading in cryptocurrencies is legal, the absence of clear regulations leaves significant gaps that could be exploited.

India's government has received criticism for its slow regulatory response, with notable figures equating unregulated crypto trading to informal money transfer systems.

Recent tax measures, including a 30% capital gains tax and the application of an 18% goods and services tax on crypto transactions, indicate ongoing attempts to manage this asset class.

As global discussions on cryptocurrency regulations progress, India's Finance Minister has called for International collaboration to navigate these emerging financial challenges.