The Supreme Court of India criticized the Union government on July 27 over its failure to implement clear regulations for cryptocurrencies, as reported by local media.
A Cry for Clear Guidelines
The Supreme Court expressed concern about the Union government’s lack of any clear rules concerning cryptocurrencies. This observation comes amid increasing instances of criminal activities involving cryptocurrencies. The court has urged the Union government to disclose whether it intends to establish a specialized federal agency to investigate these crypto-related crimes, according to the local daily report.
Justices Surya Kant and Dipankar Datta, in their statement, said:
“Regrettably, there are still no laws. Do you have a national agency to understand and properly investigate these cases? We urge you to identify a national specialized agency, in the national interest.”
Responding to Crypto Fraud
The Supreme Court made these comments during hearings related to petitions associated with cryptocurrency fraud cases across various Indian states. The court has requested a government response on their capability to create a mechanism to investigate such cases.
A Prolonged Battle for Crypto Regulations
The struggle for clear government crypto regulations in India has been ongoing. The government began working on a crypto bill as early as 2018, as per the Supreme Court’s instructions. Despite assurances of the bill’s completion, the government has yet to introduce the final draft, four years later.
A Swift Move to Crypto Taxation
While the Indian government is yet to formulate crypto guidelines, they swiftly imposed crypto taxation laws, effective from April 2022. This law came into being during a bull market, when India emerged as one of the leading crypto markets. The country saw the rise of several crypto unicorns, and trading volumes surged into the billions of dollars. However, the introduction of these tax laws had a significant impact on the flourishing crypto market. The majority of established firms chose to relocate away from India due to the absence of regulatory clarity.
