As crypto-assets continue to gain global relevance, the need for effective regulatory frameworks becomes increasingly crucial. In a significant development, India’s Supreme Court is actively seeking solutions to address the lack of regulatory clarity in the cryptocurrency industry. The Justices have expressed concerns and urged the Union Government to take decisive action in establishing firm legislation concerning digital currencies.

A report from the Hindustan Times reveals that the Supreme Court Justices have openly questioned the government’s approach and expressed their worries about the absence of a proper regulatory framework in this nascent sector. Specifically, they are pressing for the creation of a national-level agency dedicated to investigating crypto-related criminal cases.

In a direct interaction with the Union Government, Justices Surya Kant and Dipankar Datta emphasized their concerns, stating, “You still don’t have any law, unfortunately.” They have highlighted the urgent need for a centralized agency that can effectively comprehend these cases and carry out thorough investigations.

The Supreme Court Justices went on to express doubt regarding the ability of lower-level enforcement agencies to handle the complexities surrounding digital currency cases. They questioned the quality of investigations that could be conducted by police constables, assistant sub-inspectors, or sub-inspectors, highlighting the intricate nature of such cases. Consequently, they stressed the necessity for seasoned investigators well-versed in the complexities and technicalities of the digital currency field.

The Justices made a clear demand for a legislative mechanism that would enable the government to manage cryptocurrency transactions effectively. They questioned, “But so long as you don’t have a mechanism, how do you investigate people and keep them behind bars? It’s after all the country’s money, which is being siphoned off.”

Emphasizing the national importance of the matter, the Supreme Court bench further raised the question of who bears the responsibility for preventing the potential misuse of cryptocurrencies. They expressed their anticipation that the government would proactively propose a solution to address this lack of regulation.

Meanwhile, the global cryptocurrency market has shown a positive trend over the past 24 hours, with key cryptocurrencies such as Bitcoin and Ethereum recording marginal increases of 0.6% and 0.7% respectively.

As a result, the overall digital currency market has witnessed a growth of approximately $10 billion within the last day, pushing its aggregate valuation to an estimated $1.147 trillion at the time of writing.

Although India has not been particularly welcoming to cryptocurrencies, it has shown interest in developing its own Central Bank Digital Currency (CBDC) known as the digital rupee. A recent report from the Reserve Bank of India urged lenders to embrace the country’s digital currency, indicating evolving sentiments towards digital assets within the nation.

As India’s Supreme Court calls for regulatory clarity and the global cryptocurrency market continues to expand, it is clear that effective legislation is essential to ensure the secure and regulated growth of the digital currency industry. The responsibility lies with the government to address these concerns and provide a comprehensive regulatory framework that safeguards the interests of all stakeholders involved.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.