Major countries around the world are actively introducing crypto regulations to govern cryptocurrencies. Recently, the European Union and the UAE have made significant progress in developing crypto regulatory frameworks. There is another country following suit, displaying a proactive approach to regulating cryptocurrencies.
The Supreme Court of India has asked the Union Government to submit a report evaluating its capacity to establish a federal agency tasked with investigating crimes related to cryptocurrencies. Read on for the details.
Supreme Court’s Discontent over Lack of Crypto Regulations In India
In a step towards regulating the cryptocurrencies in India, the Supreme Court expressed dissatisfaction with the Central government on Friday, considering it “unfortunate” that there is currently no legislation in place to govern digital currencies or a specialized expert agency to handle criminal cases related to cryptocurrencies.
The bench comprising justices Surya Kant and Dipankar Datta raised concerns about the quality of investigations conducted in cases involving cryptocurrencies. They questioned the adequacy of having police constables, who might lack the essential expertise, handle such matters.
They said, “You still don’t have any law, unfortunately. Do you have an agency at the national level to understand these cases and investigate them properly? We want you to identify a national specialized agency, in the national interest.”
The court made this observation while hearing petitions related to cryptocurrency fraud cases in various states of India. It asked the government to provide a response on its ability to establish a mechanism for investigating such cases.
Long-Standing Need for Crypto Regulations In India
There has been a need for crypto regulations in India for a long time now. Last year the government imposed taxation laws on cryptocurrencies, however, there have been no proper guidelines for regulating it yet.
These tax laws on crypto were introduced during a period of the bull market when India became one of the leading crypto markets in the world with several crypto unicorns and trading volumes soaring into billions of dollars. However, the tax laws had a devastating impact on the thriving crypto market, leading many well-established firms to leave India due to the lack of regulatory clarity.
Despite the Supreme Court’s instruction to develop a crypto bill back in 2018, the government has not yet presented the final draft of the Bill, even after four years.
