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Court Delivers Strong Message on Crypto Regulation and ED's Credibility

The Supreme Court of India recently scrutinized the Enforcement Directorate (ED) regarding its low conviction rate and the necessity for cryptocurrency regulations.

During proceedings related to the Prevention of Money Laundering Act (PMLA), the court questioned how the ED maintains credibility with fewer than 10 convictions out of over 5,000 cases.

Chief Justice Bhushan R. Gavai highlighted the critical issue of prolonged pretrial detentions and the agency’s practice of punishing individuals before adjudication, which undermines trust in the justice system.

In response, the Solicitor-General admitted the conviction rate was low but argued it reflected similar trends in other penal offenses.

The court, however, emphasized that it would rely on facts rather than media narratives.

In a separate hearing, another judge condemned the ED's methods, urging for better training in investigations and witness management to improve outcomes.

The judges also raised serious concerns about the implications of prolonged detentions for those acquitted after years of unjust custody.

Additionally, the court turned its attention to cryptocurrency, questioning why this emerging asset class remains without regulation, contrasting it with the stringent rules governing the Indian currency.

While advocating for oversight rather than a ban, the bench indicated a supportive stance for establishing a comprehensive cryptocurrency regulatory framework in India.

These proceedings signal a pivotal moment for the ED and the crypto sector, potentially enhancing accountability and fostering legislative clarity in the evolving landscape of digital assets.