Supreme Court Equates Bitcoin Trading to Modern Hawala Network
By: live bitcoin news|2025/05/07 10:15:02
0
Share
Supreme Court Sees Bitcoin HawalaJustices admit limited understanding of Bitcoin technology.According to India’s highest court, Trading Bitcoin is similar to using the illicit Hawala money transfer system. Shailesh Babulal Bhatt is being accused of engaging in illegal trading of Bitcoin, as mentioned at the bail hearing.One of the most significant concerns that the court had was the absence of cryptocurrency regulation in India. Absent clear guidelines, Justices said, we are in a vacuum where illicit financial activity is not only possible, but possible on a huge scale. The bench also specifically pointed out that Bitcoin trading in its unregulated state is not much different from Hawala, a traditional method of carrying out illegal money transfers.The bench was led by Justice Surya Kant, who also admitted having limited knowledge of Bitcoin. During the hearing, he said, “I don’t fully grasp the intricacies of Bitcoin technology.” However, he highlighted that the unregulated nature of cryptocurrency makes it susceptible to usage like that of a sophisticated variant of Hawala.This came as part of a wider debate on the need for a strong legal framework for digital currencies. Earlier, more than two years ago, the bench had reminded the central government of its demand to clarify its stand on cryptocurrency regulation. But no significant response has been given to date, and the judiciary and public remain in the dark.Regulatory Delays Under ScrutinyThe central government was criticized by the Supreme Court for inaction. The bench added that a proper regulatory regime could provide a way to combat the risks of Bitcoin trading. Justice Kant said this is a polished form of Hawala business and there is an urgent need for clarity in this regard.During the court, Rohatgi, who was defending Bhatt, said that the trade of Bitcoins is not against the law in India and that Bitcoins are not considered to be tangible versions of cash. Referring to a previous Supreme Court decision that overturned an RBI circular forbidding cryptocurrency transactions, he said. However, the bench was adamant that a defined legal structure be set up to prevent misuse.The Gujarat government and the Enforcement Directorate (ED) have been given 10 days to respond to the matter by the court. Further discussions on Bhatt’s bail and the matter of cryptocurrency regulation are expected to take place at the next hearing on May 19, 2025.The legal status of cryptocurrencies in India has become a hotbed once again. The government has implemented taxation and anti-money laundering (AML) for digital assets, but has not yet established a comprehensive regulatory framework. The Supreme Court’s comparison to Hawala calls out the alarm bells that cryptos can be misused for illegal financial activities.The Broader Implications and Urgent Need for Crypto Education in IndiaThe Supreme Court’s recent observations on India’s approach to digital currencies identify a critical gap. Bitcoin is the world’s largest cryptocurrency that is run on a decentralized blockchain network, and so it is nearly impossible to track the transactions unless closely supervised. A key feature of anonymity, but also criticized for hiding illicit activities, as the court also points out.For context, Hawala is an informal money transfer system that has no traditional banking channels. It has previously been the target of hard-line enforcement by authorities for use in money laundering or to fund terrorism. According to the court, Bitcoin is comparable to the money that it is compared to, and if it were to be left uncontrolled, it may be just as hazardous as the cash in question.Justice Kant also admits that there is another problem in this connection, that judicial authorities do not understand this problem. However, many Indian authorities and officials lack a thorough understanding of the technical features of cryptocurrencies, which would make it difficult to effectively regulate them. Because of a lack of knowledge, policies may be too restrictive or provide inadequate protections in this area.This implies that more education has to be done to the public and the government,s especially now that the Supreme Court has openly admitted that it still has lots to learn about cryptocurrencies. In order to develop balanced regulations, which would ensure the safety of consumers and promote the use of this technology alongside the creation of applications based on it, familiarizing oneself with the possibilities that blockchain technology offers is an essential practice.The post Supreme Court Equates Bitcoin Trading to Modern Hawala Network appeared first on Live Bitcoin News.
You may also like

WEEX Trade to Earn: Turn Futures Trading into Instant WXT Rewards
Join WEEX Trade to Earn and earn instant WXT rebates on every futures trade. Boost rewards with referrals and tasks. Trade more, earn more on WEEX exchange.

Trading Everything, Never Closing: RWA Perpetual Contracts (Part 1)
RWA perpetual contracts are trying to disrupt the traditional financial markets of costly zero-day options (0DTE) and opaque contracts for difference (CFD) with transparent on-chain "linear leverage."

Morning News | Nscale completes $2 billion Series C funding; 20 millionth Bitcoin has been mined; Polymarket will launch S&P 500 binary options products
Overview of Important Market Events on March 9

Dialogue between Vitalik and Suji: Why have decentralized social products failed?
Analyzing the dilemma of decentralized social networks should start from "solving social problems" rather than "overlaying crypto finance," exploring new opportunities for the integration of AI and prediction markets.

Trading Never Sleeps: On-Chain, Crude Oil, and Leverage
The prices in this window are determined by emotions, amplified by leverage, driven by the narrative of war—rather than by the supply and demand of crude oil.

On-chain Yield Panorama: The Evolution from Interest-bearing Stablecoins to Crypto Credit Products
In a bear market, investors tend to prefer more stable returns and lower underlying risks, which has driven the growth of interest-bearing stablecoins.

RootData announced the integration with OpenClaw, and these gameplay features have gone viral
In the era of AI Agents, the value of data lies not in "ownership," but in "connection."

Key Market Intelligence on March 9th, how much did you miss out on?
1. On-chain Funds: $221M flowed into Hyperliquid last week; $186.7M flowed out of Arbitrum
2. Largest Price Swings: $DENT, $UAI
3. Top News: Middle East Conflict Sparks Stagflation Trading, Global Stock Markets Shed Around $6 Trillion

a16z: After AI Superpowers, Where to Next for Humanity?
Cryptocurrency will become the cornerstone of trust in this new era.

Why Does Oil Go Up When Bitcoin Goes Down?
The Impact of Middle Eastern Oil on Bitcoin Price

Decoding 112,000 Polymarket Addresses: The Top 1% Making Money Are Doing These Five Things
Those loss-making addresses are not stupid, just lacking discipline — too many markets involved, overexposure, excessive FOMO, and hardly any post-mortem.

AAVE founder issues a warning: DeFi must never become the exit liquidity for Wall Street private credit
In order for RWA to succeed in DeFi and for DeFi to achieve meaningful scale expansion through real-world assets, the entire industry needs to thoughtfully and cautiously build opportunities that connect TradFi (traditional finance) and on-chain markets.
How To Create A Frequency So Strong It Makes Reality Obey You
The first-ever WEEX AI Hackathon has concluded, with 10 winners emerging from over 200 global teams. Beyond its $1.8 million prize pool, the event marked a milestone—proving that the future of AI trading belongs to accessible, AI-powered innovation.

The cryptocurrency industry has waited for five and a half years, and what they got is half a ticket
The hand that opens this door is not the rule, but the direction of the wind.

The trend of Ethena reveals what information about the cryptocurrency market
Through Ethena's data insights: the collective hedging and self-protection of VCs and project parties is leading the crypto market into an extreme risk-averse moment of "complete balance between bulls and bears" for the first time in history.

I've been in the crypto industry for five and a half years, and all I got was half a ticket.
The hand that opens this door is not a rule, but a wind.

Crude Oil Surges 25%, Hyperliquid Unfolds On-Chain Showdown
Hyperliquid users now need to keep an eye on the latest developments in the Iran Hormuz Strait, while a DeFi OG is using on-chain derivatives to hedge against war risk.

$20 Billion Valuation, Is Kalshi Engaging in an Arms Race with Polymarket?
US-Iran Conflict + World Cup + Eve of Elections, Predicts Market Key Data Points to Reach New All-Time Highs in 2026.
WEEX Trade to Earn: Turn Futures Trading into Instant WXT Rewards
Join WEEX Trade to Earn and earn instant WXT rebates on every futures trade. Boost rewards with referrals and tasks. Trade more, earn more on WEEX exchange.
Trading Everything, Never Closing: RWA Perpetual Contracts (Part 1)
RWA perpetual contracts are trying to disrupt the traditional financial markets of costly zero-day options (0DTE) and opaque contracts for difference (CFD) with transparent on-chain "linear leverage."
Morning News | Nscale completes $2 billion Series C funding; 20 millionth Bitcoin has been mined; Polymarket will launch S&P 500 binary options products
Overview of Important Market Events on March 9
Dialogue between Vitalik and Suji: Why have decentralized social products failed?
Analyzing the dilemma of decentralized social networks should start from "solving social problems" rather than "overlaying crypto finance," exploring new opportunities for the integration of AI and prediction markets.
Trading Never Sleeps: On-Chain, Crude Oil, and Leverage
The prices in this window are determined by emotions, amplified by leverage, driven by the narrative of war—rather than by the supply and demand of crude oil.
On-chain Yield Panorama: The Evolution from Interest-bearing Stablecoins to Crypto Credit Products
In a bear market, investors tend to prefer more stable returns and lower underlying risks, which has driven the growth of interest-bearing stablecoins.