India and Kazakhstan push for crypto laws after major economic losses
Asian countries are losing billions of dollars due to lack of crypto regulation
India’s Supreme Court has urged the government to expedite the development of cryptocurrency regulations, warning that the lack of a clear policy is concerning and potentially harmful to the national economy.
During a hearing related to an alleged crypto fraud case, the judges questioned why central authorities had failed to establish a regulatory framework, despite the sector's rapid growth and previous court directives.
The court described unregulated Bitcoin trading as “a refined form of hawala” (an informal trust-based money transfer system) and warned that the lack of oversight could enable illegal activity.
“There is a parallel non-market structure, and it may impact the economy,” the court said, adding, “by regulating crypto, you can monitor the trade.”
Kazakhstan’s Central Bank: $15B in crypto lost due to lack of laws
The Supreme Court’s stance echoed recent comments from Kazakhstan’s central bank, which admitted that the country has lost $15 billion in crypto due to the absence of proper regulation.
At a press conference, Berik Sholpankulov, Deputy Chairman of Kazakhstan’s central bank, stated that authorities are developing stricter controls on crypto transactions, including potential criminal and administrative penalties for illegal cross-border transfers.
Although officials acknowledged that it is currently impossible to trace the missing $15 billion, Kazakhstan plans to implement a monitoring system that will allow authorities to track crypto flows in the future.
Mining profits flow abroad despite local requirements
Kazakhstan’s mining industry, which boomed after China’s crackdown, is a key focus. While local laws require miners to exchange 75% of mined crypto through platforms registered in the state-controlled Astana International Financial Center (AIFC), many still transfer their profits overseas.
Government data shows that over 91% of the $4.1 billion in crypto transactions conducted in 2023 took place on the gray market. Officials now admit the country is losing revenue and recently announced plans to legalize crypto trading outside the AIFC framework.
As we wrote, India orders exchanges to monitor crypto in border regions
