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Supreme Court of India Demands Action on Cryptocurrency Crimes!

Key Takeaways
  • Indian Supreme Court is concerned about delayed crypto rules due to rising crimes
  • Court urges the Union Government to create a special agency for crypto crime investigation amid regulatory uncertainty
  • Court’s involvement brings hope for crypto companies and investors in India
29-Jul-2023 By: Simran Mishra
Supreme Court of Ind

India's Supreme Court Urges for Investigating Agency for Crypto Crime 

The Supreme Court of India has strongly expressed its concern over the government's delay in setting up clear rules for cryptocurrencies in the country. The court's statement on July 27 was prompted by a rise in crimes involving these digital currencies.

Court Demands Action

Justices Surya Kant and Dipankar Datta have expressed their strong disappointment because the government has not provided clear guidelines about cryptocurrencies. With an increase in fraudulent activities related to cryptocurrencies, the court is urging the Union government to think about establishing a special federal agency that will focus on investigating crypto-related crimes.

Long-Awaited Regulations

During a recent hearing in India, the Supreme Court discussed several petitions related to cryptocurrency fraud cases in different states. The court emphasized that this issue is very important and needs immediate attention in the best interest of the nation. However, the court expressed concern about the government not having a specific agency to deal with these cases effectively.

Years of Uncertainty

The government's efforts to establish clear regulations for cryptocurrencies have been going on since 2018. They started working on a bill to address this issue, but it has taken a long time, and there have been repeated promises without any concrete results. As a result, the crypto industry has been living with uncertainty for over four years, not knowing what rules they need to follow. This lack of clarity has made it challenging for businesses and investors in the crypto space to plan and operate confidently.

Tax Laws Impact

Surprisingly, even though the government took its time to clarify rules for cryptocurrencies, it quickly implemented taxation laws for them in April 2022, coinciding with the booming crypto market. India became one of the top crypto markets worldwide, witnessing the rise of several successful crypto companies and a significant surge in trading activities. This sudden development caught many by surprise, as the government's stance on crypto was uncertain for quite some time. Nonetheless, the crypto industry continued to thrive in the country, despite the new taxation regulations.

Unintended Consequences

The sudden implementation of tax laws had an unexpected effect on the growing crypto market. This greatly affected successful crypto companies, leading them to move away from India because the rules were unclear. As a result, India lost important investments and job opportunities in the country, which were beneficial for the economy. The lack of clear regulations made it difficult for these firms to operate and thrive in the Indian market.

Renewed Hope

The Supreme Court's recent involvement has brought new hope for clear and fair rules on cryptocurrencies in India. The government is now focusing on creating regulations that safeguard investors and consumers while supporting the growth of the crypto industry. These rules will ensure a safe and encouraging environment for crypto enthusiasts and businesses alike. With these measures, people can feel more confident and secure when dealing with cryptocurrencies in the country.

The Way Forward

The court has given a deadline to the Union government to explain its position on creating a special agency to handle crimes involving cryptocurrencies. This is a big deal as the country tries to figure out how to deal with the opportunities and challenges of cryptocurrencies. Everyone is watching closely to see what the government will do next. This decision will be extremely important for the future of cryptocurrencies in India and around the world. People are eager to see how the government will respond to this growing digital trend. 

Currently, there is no agency or committee to monitor crypto crimes in India. Due to this reason, the greatly affected successful crypto companies move away from India because the rules were unclear. Furthermore, due to increasing frauds and crimes related to cryptocurrency in the country, people still fear from investing in the same. For this reason, creating an agency could be a huge initiative while contributing to the country’s economy.

Also, read - WorldCoin Audit Report Released: Check What Can Be Their Next Step

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