India’s Supreme Court slams crypto delay as ultra-rich flee to real estate

India’s Supreme Court has criticised the central government for failing to establish a clear regulatory framework for cryptocurrencies, calling the delay detrimental to national economic stability. On 20 May 2025, the bench described unregulated Bitcoin activity as akin to hawala operations, a form of illegal money transfer that evades traditional banking channels. The remarks come amid growing legal confusion, a lack of oversight, and ongoing enforcement challenges—including unresolved cases like the massive ₹2,000 crore WazirX hack, which the court dismissed due to the absence of a proper legal framework. Investors warn the vacuum may drive capital outflows and fintech losses. Court flags crypto vacuum In a session on Tuesday, the Supreme Court highlighted the government’s contradictory treatment of cryptocurrency. Although transactions are taxed at a steep 30% rate, there are still no formal rules guiding the sector. Justice Suryakant questioned this inconsistency by stating that recognition through taxation implies the need for proper regulation. The bench further criticised authorities for the sluggish pace in responding to systemic risks, urging immediate legislation to ensure financial security and investor protection. The absence of statutory clarity has led to repeated missteps in law enforcement. This includes the closure of high-profile cases like the ₹2,000 crore WazirX hack, where victims were redirected to the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Central Bureau of Investigation (CBI)—institutions that have historically maintained a hands-off approach to cryptocurrencies. Ongoing criminal probes such as the one against Shailesh Babulal Bhatt, accused of extorting large sums in digital assets and fiat currency, have further underscored the gaps in oversight. Investors turn to land Amid this legislative vacuum, India’s wealthiest are pulling their money out of crypto and reallocating it to high-value real estate portfolios. The country’s top 0.001% are increasingly investing in land banks, branded residences, commercial spaces, and trophy assets, both domestically and abroad. Property acquisitions ranging from ₹75 crore to ₹500 crore are becoming the preferred vehicles of wealth preservation, according to luxury real estate advisor Aishwaraya Shri Kapoor. This shift is driven by concerns over capital protection and legal ambiguity in digital assets. Unlike the volatile crypto market, real estate—especially heritage and pre-leased properties—offers liquidity safety and resale exclusivity through tightly controlled private networks. The trend points to a broader decline in confidence in the country’s digital financial infrastructure. Delays hurt fintech future India’s delay in building a regulatory foundation for crypto may also jeopardise its global fintech competitiveness. While neighbouring jurisdictions such as the UAE and Singapore have rolled out structured frameworks for digital assets, India continues to rely on patchwork taxation policies without addressing investor rights, compliance norms, or technological guidelines. This regulatory inertia may drive innovation and investment offshore, particularly as blockchain startups, developers, and institutional investors face increased uncertainty. The Supreme Court’s remarks now place pressure on the Finance Ministry and regulatory bodies to act before the sector becomes a legal no man’s land, deterring not only domestic but also foreign investment. The post India’s Supreme Court slams crypto delay as ultra-rich flee to real estate appeared first on Invezz

Source: Invezz