India's Supreme Court has urged the government to regulate cryptocurrencies, citing a gap between taxing digital assets and failing to govern them properly. The court raised concerns about the economic risks posed by unregulated crypto activity, particularly Bitcoin.

Justice Surya Kant called crypto a 'parallel economy' and questioned the 30% tax without proper regulation. The court made its remarks during a hearing concerning an ongoing investigation into a Bitcoin-related transaction.

A government legal representative responded by indicating that a regulatory review may be considered.

Cryptocurrency use is growing in India. However, the country has yet to introduce dedicated laws to regulate the sector. It has raised concerns among legal experts, regulators, and crypto participants.

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