The union government informed the Supreme Court on January 20 that they had not yet decided on a framework for regulating cryptocurrencies and thoroughly investigating any offenses associated with them. The bail request of Ganesh Shiv Kumar Sagar, who was accused of cryptocurrency fraud, was being heard by the Supreme Court judges’ panel.
The Basis
Pic Credit- indiatoday
The petitioner, Ganesh Shiv Kumar Sagar, was a self-employed digital marketer who presented himself as the master distributor of the Bux coin – cryptocurrency and director of the company named Bitsolives. He is purportedly involved in forex trading, cryptocurrencies, and blockchain development. The company app was made available on the google play store. From the firm, a number of investors bought the cryptocurrency. The petitioner established a fraudulent exchange known as Cash Finex, and investors were convinced to sell their bitcoin through it. However, the firm vanished, exploiting the investors. The petitioner faces charges under Sections 405, 406, 415, and 420, encompassing offenses like cheating, theft, criminal breach of trust, and more.
Former Scenario
In July 2023, the petitioner received temporary protection from the Apex Court. As a result of the man’s cooperation with the police and assistance with the inquiry, the court declared that the protection was now absolute.
The Ministry of Home Affairs was then requested by the court to become engaged in the case on the same day, July 27, 2023. Mr. Banerjee was also instructed to submit a counter-affidavit outlining a thorough process for efficiently looking into violations involving cryptocurrencies or similar matters.
Later, on September 21, 2023, Attorney General R. Venkataramani, speaking on behalf of the government, stated that this matter required careful consideration. Their intention was to take into account both the Indian and global viewpoints. Moreover, the Attorney General stated that the decision will be made and communicated to the court after a period of two to three months of consideration.
The Present Scenario
The government’s Additional Solicitor General, Vikramjit Banerjee on the 20th of January, told the Supreme Court’s panel of justices Surya Kant and K.V. Viswanathan that the government is attempting to regulate the constantly shifting realm of digital currencies.
In order to compile new data and provide an updated report on government actions, the Additional Solicitor General requested extra time. He requested an extension so that he could submit an affidavit by the next day.
At the hearing, Justice Kant stated that the court’s goal is to ensure that regulations are in place to protect the general public from frauds and improper usage of cryptocurrencies. The kinds of currency that ought to be permitted or regulated are not well understood. Everyone may create their own currency and spend it as they like if there are no restrictions. The panel of judges informed Mr. Banerjee that would be extremely dangerous.
According to the Additional Solicitor General, discussions regarding it are ongoing, but the matter is complex and constantly evolving. At the following hearing, he agreed to provide further written details. The judges have now scheduled a follow-up hearing for March 21.
Conclusion
An important step towards regulating cryptocurrencies in India has been taken with the Supreme Court of India’s instruction to the Union Government. Achieving a balance that protects investor interests and the stability of the financial system while promoting innovation is critical as the debate over the benefits and drawbacks of regulation goes on. Although enacting complete and transparent laws would be difficult, there are chances for the cryptocurrency business to expand and thrive.
Read our post on The Astonishing Rise of India on the Global Crypto Adoption Index to learn more about cryptocurrencies in India.
