New Delhi: The Centre is yet to formulate a mechanism to regulate cryptocurrencies and effectively investigate related offences, Additional Solicitor General Vikramjit Banerjee appearing on behalf of the government told the Supreme Court.The government counsel south time from a bench of Justices Surya Kant and KV Viswanathan to file a response in the case giving updated position on the mechanism in regards to regulation of cryptocurrencies.“So far as the stance of the Union of India with reference to the matters of cryptocurrency arising in different states is concerned, the Additional Solicitor General of India seeks and is granted four weeks’ time to file an appropriate affidavit,” the bench ordered on Friday.Notably, the Ministry of Finance in 2023 had said that crypto Assets are borderless, require international collaboration to prevent regulatory arbitrage.
Notably, the Centre and the Reserve Bank of India (RBI) have repeatedly cautioned people regarding crypto currencies.The SC bench was informed by the Additional Solicitor General that the the issues related to the digital currency are continuously evolving, the government is contemplating on formulating guidelines to regulate the cryptocurrencies.“So far as the stance of the Union of India with reference to the matters of cryptocurrency arising in different states is concerned, the Additional Solicitor General of India seeks and is granted four weeks’ time to file an appropriate affidavit,” the bench ordered on Friday.The top court stated that it was concerned and wanted the government to set up a mechanism to regulate cryptocurrencies so that there are safeguards to protect the common man from frauds and misuse of digital currencies.
“We are not experts on what kind of currencies you should have or regulate.If there is no mechanism to regulate it, then anyone can create a currency and start transacting in it.It will be very dangerous,” the bench told Banerjee.The ASG assured the SC bench that the government is deliberating implementing regulatory measures, however, as it it’s an evolving question, an affidavit with details of it would be filed before the Supreme Court.
The SC posted the matter for further hearing on March 21.The issue cropped up when the apex court bench was hearing a bail plea of one Ganesh Shiv Kumar Sagar, accused of being involved in cryptocurrencies fraud in states like Jharkhand, Maharashtra and Gujarat.On July 27, 2023, the SC had passed the interim protection from arrest order after counsel for the Jharkhand government stated that Sagar was fully cooperating with the investigating team.Meanwhile, the Centre on September 21, 2023, said the Indian government should be made a party to the case as the matter requires in depth consideration keeping in view the domestic and international perspective.
On July 27, 2023, the top court had pulled up the Union Ministry of Home Affairs in the case and asked the Additional Solicitor General to file a counter affidavit suggesting some comprehensive mechanism for effective investigation of the offences relating to cryptocurrency or alike.Read [Latest News](https://www.news9live.com/latest-news) and [Breaking News](https://www.news9live.com/) at News9 Live, Browse for more [Biz News](https://www.news9live.com/business/biz-news).
