The Supreme Court of India has ordered the government to reveal its plans to investigate cryptocurrency crimes. The court expressed concern about the absence of a law or an expert agency to supervise the cryptocurrency sector. Industry players wait longer until the country establishes a specialized regulatory framework for cryptocurrencies.
The Supreme Court of India has ordered the Union government to reveal its plans to regulate crypto crime in India. According to local reports, the court called it “unfortunate” that the administration has not established a federal agency or law to investigate cryptocurrency cases.
Meanwhile, industry players expect it will take a few months for the country to develop a specialized framework to address the sector.
Supreme Court Withdraws Indian Administration
The judges questioned the government’s ability to handle complex cryptocurrency cases with its current law enforcement setup. According to the Hindustan Times, the officials said:
“Unfortunately, you don’t have any laws yet. Do you have an agency at the national level to understand these cases and investigate properly?”
The judges emphasized the need for a specialized national agency to guarantee quality investigations “in the national interest.” This also means that the government must implement comprehensive crypto regulations.
The statement came as the court addressed petitions filed by Ganesh Shivkumar Sagar, who is currently facing cryptocurrency fraud charges in multiple states. Sagar requested bail and suggested that a central agency lead the investigation.
There is currently no timetable for the introduction of crypto regulation. However, industry players believe that definitive actions toward partial regulation may take a few more months.
Supreme Court of India Registered Lawyer Rajat Mittal noted that “The request by the Supreme Court to the central government to have a law and establish an agency is a significant advance in the ongoing debate on the regulation of cryptocurrencies.
Crypto Legislation Does Not Close
In a recent conversation, Ashish Singhal, head of cryptocurrency exchange CoinSwitch, said that a cryptocurrency regulatory framework may not be put in place in India in the next six months.
The Indian regime puts cryptocurrencies under a tax regime but has not recognized them as a legal asset class. Meanwhile, the Indian central bank has maintained a negative stance on the sector. The country also faces additional pressure as it chairs the G20 summit.
Despite regulatory uncertainty, India has emerged as the largest crypto employer in Asia. It has even bested China for the latter’s regulatory crackdown. India has a significant presence in major crypto companies around the world, according to a recent study by K33 Research.
Crypto Industry in India Faces Challenges
While India remains an attractive destination for the cryptocurrency industry, it also faces challenges with ongoing cryptocurrency-related police cases.
Recently, the Central Bureau of Investigations (CBI) arrested a resident of the national capital. Reports highlight that the alleged criminal posed as a Canadian government official to trick victims into transferring their assets to crypto wallets.
According to local reports, the central agency recovered around $121,000 during a search operation.
Rajat Mittal explains that agencies such as the GST Intelligence Directorate, Enforcement Directorate, and Financial Investigation Unit are investigating numerous cases involving crypto fraud. He highlighted that these investigations often stall in the absence of clear crypto regulations.
This year, the Indian government brought the cryptocurrency industry under the Prevention of Money Laundering Act (PMLA). However, the Supreme Court directive reflects the pressing need for a well-defined regulatory framework.
By Audy Castaneda
