NEW DELHI (CoinChapter.com) — On July 27, the Supreme Court of India expressed disappointment over the Union government’s delay in implementing cryptocurrency regulations.
The court highlighted the need for clear guidelines amid a surge in criminal activities involving cryptocurrencies. As the debate over crypto regulations continues, it has called on the government to disclose its plans for establishing a specialized federal agency to investigate such cases.
As per the report, Justices Surya Kant and Dipankar Datta pointed out the absence of any pertinent law, expressing their concern by stating:
“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.”
Court’s Call for a National Specialized Agency
During a hearing of petitions related to cryptocurrency fraud cases across different states in India, Justices Surya Kant and Dipankar Datta questioned the government’s inaction on formulating comprehensive crypto laws.
They emphasized the need for an agency at the national level to handle crypto cases efficiently and protect the national interest.
The court’s strong remarks come in the backdrop of an extended struggle for well-defined crypto regulations in the country. The Union government initiated the process of drafting a crypto bill in 2018, following the Supreme Court’s directives.
However, the bill’s final draft is yet to see the light of day, despite repeated assurances of its completion over the past four years.
Calls for Clarity in Crypto Regulations
While the Indian government has been sluggish in providing clear guidelines for cryptocurrencies, it moved swiftly to impose crypto taxation laws, effective April 2022. This decision came amidst a bullish market where India witnessed the rise of numerous crypto unicorns and trading volumes reaching record highs.
However, the imposition of tax laws hurt the flourishing crypto market in India. The lack of regulatory clarity prompted many established crypto firms to relocate their operations to more crypto-friendly jurisdictions, causing a setback to the growth of the domestic crypto industry.
The Indian Supreme Court’s recent reprimand of the Union government highlights the pressing need for well-defined crypto regulations. With criminal activities related to cryptocurrencies on the rise, the court’s call for a dedicated federal agency to handle crypto cases indicates the seriousness of the matter.
As the nation awaits the finalization of the crypto bill, stakeholders in the crypto space hope for a conducive regulatory environment that fosters innovation and responsible use of digital assets.
The clarity in regulations could pave the way for India to reclaim its position as a significant player in the global crypto landscape, attracting investments and encouraging the growth of homegrown crypto ventures.
