The Indian cryptocurrency market has been a topic of contention and debate for quite some time now. The lack of solid regulations and guidelines for crypto trading in the country has led to uncertainty and legal challenges. This issue came to the forefront once again when the Indian Supreme Court recently declined to consider a Public Interest Litigation (PIL) that aimed to establish regulations and a framework of guidelines for cryptocurrency trading in India.
According to a report from The Hindu Business Line, the bench headed by the Chief Justice of India (CJI), after listening to the plea, remarked that the petitioner’s demands are more legislative in nature. Given the petition’s character, the bench, including Justice JD Pardiwala and Manoj Misra, dismissed the plea. The Supreme Court noted that despite the petitioner filing a PIL requesting regulations and guidelines for cryptocurrency and its trading, the underlying objective is to secure bail.
The petitioner, Manu Prashant Wig, is currently held in custody by the Delhi Police in connection to a cryptocurrency case. The Economic Offence Wing (EOW) of the Delhi Police filed a case in 2020, accusing Wig of enticing individuals to invest in crypto with promises of higher returns. Wig served as one of the directors at Blue Fox Motion Picture Limited and enticed individuals to invest, leading to victims reporting the fraud to the EOW in Delhi. A total of 133 investors or victims who had invested their funds, filed a case stating Wig deceived them.
Seeking relief from judicial custody, the petitioner, Manu Prashant, filed a PIL demanding regulations and a framework for crypto trading in India. Despite the Supreme Court rejecting the PIL, the bench permitted the petitioner, currently in jail, to pursue legal remedies and approach other relevant authorities.
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During the court hearing, the bench led by CJI Chandrachud advised the petitioner to approach a different court for bail. Expressing reservations about the plea for crypto trading regulations, the court noted that such demands fall within the legislative domain. The court highlighted its inability to issue directives under Article 32 of the Indian Constitution.
The status of crypto trading in India remains contentious due to the absence of standardized rules, guidelines, or specific frameworks. India is reportedly developing a cryptocurrency regulatory framework, drawing from joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The outcome could manifest as legal legislation within the next five to six months, as per Cointelegraph’s recent coverage.
This case highlights the complex and evolving nature of the cryptocurrency industry, especially in countries where regulations are still being developed. The rapid growth of the crypto market has brought with it new challenges and legal considerations that are constantly being navigated by authorities and market participants alike.
The outcome of this particular case could have significant implications for the future of crypto trading in India. As the country continues to work on developing a regulatory framework, the legal and judicial decisions made in cases like this one will play a pivotal role in shaping the landscape of the cryptocurrency market in India. The involvement of international organizations and regulatory bodies further underscores the global impact and relevance of India’s approach to cryptocurrency regulation.
Overall, the Supreme Court’s decision to reject the PIL and the ongoing efforts to establish regulations for crypto trading in India serve as a microcosm of the broader global conversation surrounding the legal and regulatory frameworks for cryptocurrencies. As the industry continues to evolve, it is clear that these discussions will remain central to the future of crypto trading both in India and around the world.
