According to the reports of the Hindustan Times, the Supreme Court (SC) has directed the Indian government to clarify whether it plans to establish a specialized federal agency to investigate criminal cases involving cryptocurrencies.
The court expressed its concern over the absence of a regulatory law for digital currencies and the lack of an expert agency to handle such matters.
Justices Surya Kant and Dipankar Datta raised questions about the quality of investigations conducted by regular law enforcement officials in complex cryptocurrency cases.
They emphasized the need for a dedicated national agency to safeguard the interests of innocent investors who are falling victim to cryptocurrency frauds.
The court urged the Centre to implement a legal framework to address cryptocurrency-related cases effectively. It pointed out that without a proper mechanism, it becomes challenging to investigate and detain individuals involved in siphoning off the country’s money through such illicit activities.
The hearing involved petitions filed by Ganesh Shivkumar Sagar, a Delhi resident accused in multiple cryptocurrency fraud cases across different states of the country like, Maharashtra, Gujarat, and Jharkhand. Sagar sought bail and requested that all his cases be handed over to a central agency for investigation.
Both judges expressed surprise and bewilderment at the government’s delay in introducing cryptocurrency legislation, despite earlier assurances of working on it.
The court’s directive comes amidst growing concerns about the rising number of cryptocurrency-related scams and the need for a robust regulatory framework to protect investors and curb illicit financial activities.