On July 27, the Supreme Court of India issued a rebuke to the government for the delay in developing the regulatory framework for digital assets in the country. This was reported by Hindustan Times.
The bench’s remark came during hearings on petitions filed in connection with cryptocurrency fraud cases in various Indian states. The bench asked for a response on whether the country has the capacity to establish a mechanism to investigate such cases.
“Unfortunately, you still have no law. Is there a national agency that would deal with [in crypto crimes] and investigate them properly? We want you to create a specialized department in the public interest,” the court said.
The government began developing legislation for digital assets back in 2018, but has yet to present a final version of the document.
In early 2021, reports surfaced in India of a possible ban on cryptocurrency, even talk of criminal liability for owners. In mid-year there were reports that authorities would legalize digital currencies as a class of assets.
However, in November there was renewed talk of the government’s intention to ban most ‘private currencies’. This sparked panic in the local market, leading to a short-term local Bitcoin price drop of 15%.
Despite the lack of a legal framework, in 2022 India tightened levies on traders and investors. The law imposes a 30% tax on cryptocurrency transactions and 1% under the TDS.
In February, India’s central bank governor Shaktikanta Das warned investors against investing in cryptocurrency.