The Supreme Court (SC) directed the Union government on Thursday to state whether it intends to establish a federal agency to investigate criminal cases involving cryptocurrencies, calling it “unfortunate” that the Centre still lacks a law to regulate digital currencies, as well as an expert agency to investigate such matters.
The SC bench ruled that several innocent investors in the country are being duped but there is no agency at the national level that can crack the code in such cases involving complex nature of transactions, pleading with the Centre to have a legal regime in place to handle cases involving cryptocurrencies.
“Some sort of legislative mechanism is required.” You can tell us that it is up to you whether you want it or not. “How do you investigate people and keep them behind bars if you don’t have a mechanism?” the bench asked Additional Solicitor General Vikramjit Banerjee, who represented the Centre.
The court was considering petitions filed by Ganesh Shivkumar Sagar (47), a Delhi resident charged with bitcoin fraud in Maharashtra, Gujarat, and Jharkhand.
In one of his requests, he requested bail, while in another, he requested that all cases against him be turned over to a single agency for inquiry.
With the law officer present, both justices on the bench voiced their surprise that the Centre has yet to draught a cryptocurrency law, despite frequently submitting to the courts that such legislation was being considered.