Yet again, the Apex Court has come to citizens' rescue, this time around by becoming the voice of thousands of cryptocurrency investors in the country. The Centre, through the Budget session of 2022, imposed a 30% tax on virtual digital assets like cryptocurrency. However, Finance Minister Nirmala Sitharaman later said: "I am not going to legalise it or ban it at this stage. Banning or not banning will come subsequently, when consultations give me input." This dual stance of the government over the trading of private cryptocurrencies baffled netizens, who demanded clarity on the subject.
On 25th February 2022, a Supreme Court bench led by Justice D.Y. Chandrachud was hearing the case of Ajay Bhardwaj v. Union of India and Others (the GainBitcoin scam). Justice Surya Kant asked the Additional Solicitor General, Aishwarya Bhati, to clarify on record the government's stance on the trade of cryptocurrencies. The nation's eyes remained on the government's submission to the Apex Court.
Interestingly, in November 2021, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was introduced, aimed at the creation and facilitation of India's own official digital currency, to be issued by the Reserve Bank of India. The bill also sought to prohibit investors from trading in private cryptocurrencies, with certain exceptions regarding the underlying technologies.
At the time, there were no prohibitions on trading in private cryptocurrencies; however, as stated above, a 30% tax was imposed on profits earned by investors from private cryptocurrencies. The government's fuller response to the Supreme Court's query remained awaited.
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