Major countries around the world are actively introducing regulations for cryptocurrencies. The European Union, UAE and other countries have already made progress in developing regulatory frameworks for crypto. India is now following suit with a proactive approach to crypto regulations.
The Supreme Court of India has asked the Union Government to submit a report evaluating the federal government’s capacity to set up a federal agency to investigate crimes related to cryptocurrency.
Supreme Court’s Discontent Over Lack of Crypto Regulations in India
The Supreme Court of India has expressed its discontent over the lack of regulations for cryptocurrencies. Currently, there are no laws governing digital currencies, nor is there an agency of experts specialized in criminal cases involving cryptocurrency. The quality of investigations conducted in cases that involve cryptocurrencies has raised concern, as the bench comprising justices Surya Kant and Dipankar Datta questioned whether it is appropriate for police constables to handle these 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.”
Long-Standing Need for Crypto Regulations in India
There has been a demand for crypto regulation in India for a long time. The government imposed a tax on cryptocurrency, but there are no guidelines to regulate it. These tax laws were introduced during a bull market, which had a disastrous impact on the crypto market, resulting in the departure of many well-established companies due to lack of clarity on regulatory issues. 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.