The Indian Supreme Court has dismissed a Public Interest Litigation (PIL) seeking to establish regulations and guidelines for cryptocurrency trading within the country.
Bench’s Observation on Legislative Nature
The bench, headed by Chief Justice of India (CJI), highlighted that the petitioner’s demands lean more towards legislative considerations. After a thorough listening to the plea, the bench, which included concluded that the nature of the petition warranted a legislative approach, as reported.
The Supreme Court emphasized that the underlying motive was the petitioner’s quest for bail. This was despite the PIL’s enjective to establlish a regulatory framework for cryptocurrency. Notably, the petitioner, Manu Prashant Wig, is currently in custody under allegations related to a cryptocurrency case.
Background of the Petitioner’s Case
Wig, previously a director at Blue Fox Motion Picture Limited, faces accusations of enticing individuals to invest in cryptocurrency with promises of substantial returns. The Economic Offence Wing (EOW) of the Delhi Police filed a case in 2020, responding to reports from 133 investors who claimed to be deceived by Wig.
While rejecting the PIL, the Supreme Court granted the petitioner the opportunity to pursue legal remedies and approach relevant authorities. CJI Chandrachud advised seeking relief through a different court for bail. He also expressed reservations about the court issuing directives on crypto trading regulations, deeming it within the legislative domain.
Debates on Crypto Trading in India and Future Prospects
The absence of standardized rules and frameworks has left the status of crypto trading in India in a state of debate. The court’s decision sheds light on the ongoing challenges, emphasizing the need for legislative clarity.
Despite the current uncertainties, India is reportedly working on a cryptocurrency regulatory framework. Additionally, drawing insights from joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
Anticipated within the next five to six months, this framework could provide a legal foundation for cryptocurrency activities in the country. Stay tuned for updates on this evolving story.