The Supreme Court of India has strongly criticized the central government, expressing its dissatisfaction with the lack of clear law or regulation regarding cryptocurrencies.
The Apex Court also noted the absence of an expert agency to investigate criminal cases involving cryptocurrencies.
The court questions the government
The Supreme Court said it was unfortunate that the central government did not introduce any type of legislation to regulate cryptocurrencies. The court also asked the central government to clarify whether it intends to create a federal agency to investigate criminal cases involving crypto. He also stressed the importance of creating an agency capable of understanding and thoroughly investigating cases involving crypto at the national level, adding that it is in the interest of the country to have such an agency in place.
The bench, comprising Justice Dipankar Datta and Justice Surya Kant, also questioned the quality of the investigations carried out by the police, saying they may not have the expertise to handle such cases, but that ‘they are always promoted to higher ranks and positions. The bench remarked,
“You still don’t have a law, unfortunately. Do you have an agency at the national level to understand these cases and investigate them properly? We want you to identify a national agency specializing in the national interest. What kind of quality investigation can you expect when you have a police officer who is promoted to assistant sub-inspector or sub-inspector to handle such cases? »
Innocent investors are suffering
The court urged the government to design a legal regime to deal with cases involving cryptocurrencies as soon as possible. The bench expressed anguish that innocent investors were being duped when the government had no capable agency present domestically to investigate the complex nature of crypto transactions. The bench remarked to the additional solicitor general, Vikramjit Bannerjee, stating:
“There must be a legislative mechanism. You can tell us that it’s up to you whether you want it or not. But as long as there is no mechanism, how to investigate people and keep them behind bars? It is, after all, the country’s money that is being siphoned off. It’s like Hawala. Who is responsible for stopping it? We thought you would introduce yourself and provide a solution.
The case in question
The bench made the remarks while hearing a case involving a Delhi resident facing crypto fraud charges in several cases including Gujarat, Maharashtra and Jharkhand. The accused, Ganesh Shivkumar Sagar, has filed several motions seeking bail and requesting that all cases against him be transferred to a central agency for further investigation.
In another incident, the CBI apprehended a Delhi resident posing as a Canadian government official, tricking his victims into transferring their digital assets to crypto wallets which were later hijacked with the help of several accomplices. . A subsequent search operation resulted in the agency recovering over a crore in cash from the main defendant’s premises in Delhi.
According to the First Information Report (FIR) filed by the CBI, the main defendant, along with an accomplice, posed as Canadian government officials. The accused then deceived a Quebec-based individual, forcing him to deposit over CAD 7,000, which is equivalent to approximately Rs. 4.30 lakh, in a crypto wallet.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.