The absence of defined rules and regulations governing cryptocurrencies in India has lately drawn the attention of the country’s Supreme Court. The court referred to the lack of such legislation as “unfortunate,” underscoring the pressing need for a legislative framework to regulate the rapidly expanding crypto industry.
The court has come under fire as the number of cryptocurrency-related criminal prosecutions increases. In response, the Union administration has been ordered by the Supreme Court to specify whether it plans to create a federal office particularly dedicated with looking into these instances. The national level needs a dedicated organization that can comprehend and fully probe the complicated nature of crypto transactions, the court noted.
In addition to investor safety, the Supreme Court is also concerned about the growing number of innocent investors who are being taken advantage of because of the complicated nature of cryptocurrency transactions. The court emphasized that an increase in fraudulent activities is being caused by the lack of a competent national institution to look into such matters.
Strangely, the government moved quickly to enact crypto taxes regulations, which took effect in April 2022, despite its slowness to develop clear crypto principles. The lack of legislative certainty has caused many established enterprises to migrate from India, which has had a substantial influence on the Indian cryptocurrency sector.
Despite the government having been told to start working on a crypto law as early as 2018, the court’s views came as a surprise. The regulatory ambiguity surrounding cryptocurrencies in India is further exacerbated by the fact that the final text of the crypto law has not yet been presented.
The Supreme Court’s comments highlight the urgent need for India to develop a thorough legal framework for cryptocurrencies. The court’s demand for clear legislation and a specialized investigative agency might be a big step toward securing investor security and stopping criminal activity as the nation deals with the potential and problems provided by the crypto industry.
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