The Supreme Court of India has refused 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, the bench headed by the Chief Justice of India (CJI), after hearing the plea, noted that the demands of the petitioner are more legislative in nature. Given the nature of the petition, the court, including Justice JD Pardiwala and Manoj Misra, dismissed the petition. The Supreme Court noted that even though the petitioner filed a PIL seeking regulations and guidelines for cryptocurrencies and their trading, the underlying objective is to ensure bail.
Significantly, Manu Prashant Wig, the petitioner, is currently detained by the Delhi Police in connection with a cryptocurrency case. The Economic Offenses Wing (EOW) of the Delhi Police filed a case in 2020, accusing Wig of inciting people to invest in cryptocurrencies with promises of higher returns.
According to the report, Wig was one of the directors of Blue Fox Motion Picture Limited, which attracted people to invest. The victims later reported the fraud to the Economic Offenses Wing (EOW) in Delhi. A total of 133 investors or victims who had invested their funds filed a lawsuit claiming that Wig deceived them.
Seeking relief from judicial custody, the petitioner, Manu Prashant, filed a PIL demanding regulations and a framework for cryptocurrency trading in India. Despite the Supreme Court rejecting the PIL, the court allowed the petitioner, currently in prison, to file legal remedies and approach other relevant authorities.
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During the court hearing, the bench headed by CJI Chandrachud advised the petitioner to approach a different court for bail. Expressing reservations on the call for regulations for cryptocurrency trading, the court noted that such demands fall within the legislative ambit. The court highlighted its inability to issue directives under Article 32 of the Indian Constitution.
He Status of cryptocurrency trading in India. remains debatable due to the absence of standardized rules, guidelines or frameworks specific to handling cryptocurrencies. India is reportedly developing a regulatory framework for cryptocurrencies, based on joint recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The result could manifest as legal legislation within the next five to six monthsaccording to recent Cointelegraph coverage.
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