India's Supreme Court has criticized the central government for failing to create a clear regulatory policy for cryptocurrencies, highlighting concerns over an emerging parallel under-market that could impact the economy. Justices Surya Kant and N Kotiswar Singh expressed confusion over why a straightforward regulatory framework has not been established, discussing the government's delayed plans to release a crypto policy discussion paper that was initially expected by September of the previous year. During a hearing related to a bail petition for a resident accused of crypto fraud, the court emphasized the potential for regulation to monitor and control the crypto trade, likening bitcoin trading to illicit transactions akin to the illegal Hawala system in India. The court's inquiry demonstrated the urgency for a structured approach to cryptocurrency regulation, which remains unarticulated by the government, causing difficulties in distinguishing victims from perpetrators in crypto-related cases.

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