The Supreme Court of India has recently expressed concern over the lack of clear norms and regulations governing cryptocurrencies in that nation. The court characterised the absence of such law as “unfortunate,” highlighting the urgent need for a legal framework to oversee the quickly developing cryptocurrency industry.
As the number of criminal proceedings involving cryptocurrencies rises, the court has come under pressure. In response, the Supreme Court has ruled that the Union government must state if it intends to establish a federal office specifically tasked with looking into these cases. The court observed that a focused organisation at the national level is required to comprehend and thoroughly investigate the intricate nature of crypto transactions.
The Supreme Court is worried about the increasing number of innocent investors who are being taken advantage of because bitcoin transactions are so sophisticated in addition to investor safety. The court emphasised that the absence of a capable national organisation to investigate such problems is contributing to a rise in fraudulent operations.
Strangely, the government moved fast to pass legislation governing crypto taxes, which became effective in April 2022. This is in contrast to how slowly it developed definite crypto principles. Numerous well-established businesses have left India due to the uncertainty surrounding the country’s laws, which has had a significant impact on the country’s bitcoin market.
The court’s opinions were unexpected, even though the government had been instructed to begin developing a crypto law as early as 2018. The fact that the final wording of the cryptocurrency bill has not yet been presented exacerbates the regulatory uncertainty surrounding cryptocurrencies in India.
The Supreme Court’s remarks emphasise how crucial it is for India to create a comprehensive regulatory framework for cryptocurrencies. As the country deals with the possibilities and issues presented by the cryptocurrency industry, the court’s call for clear regulations and a specialised investigative agency may be a significant step towards protecting investor protection and halting illegal conduct.