India’s Supreme Court Chastises Government Over Delay in Crypto Regulation – Investor Bites

SNEAK PEEK

• Supreme Court urges government to tackle rising cryptocurrency crimes.
• The lack of regulations prompts crypto firms to exit the Indian market.
• India’s government delays delivering promised cryptocurrency regulation bill.

On July 27, the Supreme Court of India expressed profound concern over the country’s lack of clear guidelines regarding cryptocurrencies. With rising instances of crypto-related crimes, the court observed the government’s inertia as “unfortunate.” Consequently, it directed the Union government to consider creating a federal agency dedicated to investigating such cases.

Further, during the hearing of crypto fraud cases from various states, Justices Surya Kant and Dipankar Datta posed a pertinent question to the Union government. They asked:

Do you have an agency at the national level to understand these cases and investigate them properly? We want you to identify a national specialised agency, in the national interest.

Moreover, the court called for a report, seeking the government’s plans and ability to establish such an investigative mechanism.

Based on reports, India has struggled to roll out clear crypto regulations for years. This skirmish began in 2018 when the Supreme Court instructed the government to draft a crypto bill. However, four years later, no final draft has surfaced despite repeated assurances from the government.

In contrast to its lack of regulatory guidance, the Indian government was prompt in implementing crypto taxation laws, introduced in April 2022. Significantly, this law came into effect during a bull market when India emerged as a major player in the crypto arena with several crypto unicorns and skyrocketing trading volumes.

However, this legislation severely impacted India’s flourishing crypto market. As regulatory clarity remained elusive, most well-established crypto firms moved their operations away from India.

In conclusion, as India grapples with the complexities of the crypto market, it’s clear that comprehensive regulations and expert enforcement agencies are essential for a safe and flourishing ecosystem. The government’s response to the Supreme Court’s call will set a precedent for the nation’s future crypto market landscape.