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  • Writer's pictureSarah Dixon

India's Supreme Court critiques crypto regulation absence.


India's Supreme Court critiques crypto regulation absence.
India's Supreme Court critiques crypto regulation absence.

The lack of clear laws or regulations pertaining to cryptocurrencies was criticized by the Supreme Court of India, which expressed its disapproval of the central government's handling of the matter. Additionally, the court noted the absence of an expert agency to investigate criminal cases involving cryptocurrencies.


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India's Supreme Court critiques crypto regulation absence. Court Questions Government

The Supreme Court has expressed disappointment that the central government has not yet introduced any legislation to regulate cryptocurrencies. The court has also requested clarification from the government on whether it plans to establish a federal agency to investigate criminal cases involving crypto. It has emphasized the importance of a national-level agency capable of comprehending and thoroughly investigating crypto-related cases, stating that it is in the country's best interests to have such an agency in place. India's Supreme Court critiques crypto regulation absence.


The bench, consisting of Justice Dipankar Datta and Justice Surya Kant, has also raised concerns about the quality of investigations carried out by the police, noting that they may lack the necessary expertise to handle such cases but are still being promoted to higher ranks and positions. The bench has remarked,

“You still don’t have any 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 specialized agency in the national interest. What kind of a quality investigation can you expect when you have a police constable who gets promoted to an assistant sub-inspector or a sub-inspector to handle such cases?”

Innocent Investors Suffering

The court has requested that the government establish a legal framework for handling cryptocurrency-related cases as soon as possible. The judges expressed concern that unsuspecting investors were being scammed, and that the government lacked a competent national-level agency to investigate the intricacies of cryptocurrency transactions. The bench addressed the additional solicitor general, Vikramjit Bannerjee, and made the following remark:

“There has to be some legislative mechanism. You can tell us that it is for you to decide whether or not you want it. But so long you don’t have a mechanism, how do you investigate people and keep them behind bars? It’s, after all, the country’s money that is being siphoned off. It’s like Hawala. Who has the responsibility to stop it? We thought you would yourself come forward and provide some solution.”

The Case In Question

During a recent court hearing, a Delhi resident named Ganesh Shivkumar Sagar was facing charges of crypto fraud in multiple cases across India, including Gujarat, Maharashtra, and Jharkhand. Sagar has filed several petitions seeking bail and asking that all cases against him be transferred to a central agency for further investigation.


In a separate incident, the CBI apprehended a Delhi resident who had posed as a Canadian government official, tricking victims into transferring their digital assets to crypto wallets that were then misappropriated with the help of multiple accomplices. The agency recovered over 1 crore in cash during a subsequent search operation at the prime accused's premises located in Delhi.


According to the first information report (FIR) filed by the CBI, the main accused and an accomplice pretended to be Canadian government officials and tricked an individual based in Quebec into depositing over 7000 CAD, equivalent to around Rs. 4.30 lakh, into a crypto wallet.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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