India Struggles to Curb Rising Crypto Frauds, Victims Left in a Legal Abyss Amid Regulatory Ambiguity

cryptonews.com:

India is currently witnessing an alarming surge in cryptocurrency-related frauds, leaving investors in despair and criminals largely unchecked. 

The absence of clear regulations in the cryptocurrency space can largely be attributed to the encouragement of these illicit activities. 

In a conversation with CryptoNews, Gaurav Mehta, a forensic expert who provides consultancy services to the Indian law enforcement agencies in investigating crypto-related crimes and the co-founder of Catax, shed some light on the challenges faced by India's cryptocurrency ecosystem and the quest for solutions.

India is among the top countries in the world when it comes to crypto adoption. This is despite the lack of clear regulations and heavy tax policies on crypto gains. 

When discussing the lack of clear regulations in India, Gaurav Mehta explained how this regulatory ambiguity provides a fertile ground for criminals. 

"The absence of regulation further emboldens criminals, as the existing justice system and law enforcement agencies lack the focus, capacity, and competency to combat crypto-related crimes. This regulatory void leaves victims in a state of helplessness."

Earlier in July,  the Supreme Court of India questioned the Solicitor General on the competency of law enforcement agencies to investigate such crimes. Mehta explained, "The Supreme Court inquired about the competence of existing law enforcement entities in handling such cases. The court asked the Solicitor General which existing law enforcement infrastructure is capable of handling such cases because what we have seen is that justice has not prevailed as there are a lot of applications pending in the Supreme Court.”

The highest level court of India emphasized the need for clarity