The Indian Supreme Court, led by Chief Justice Chandrachud, recently faced a petition seeking establishing a regulatory framework for cryptocurrency trading. However, the bench, which included Justices JD Pardiwala and Manoj Misra, dismissed the plea. They emphasized that the demands presented were legislative, falling outside the court’s purview for direct action. This decision underlines the judiciary’s recognition of its limits regarding creating laws, especially in complex areas like cryptocurrency.
India’s Crypto Regulation Plea Dismissed by SC
Manu Prashant Wig, the petitioner and a former director at Blue Fox Motion Picture Limited, is currently in custody due to allegations related to cryptocurrency fraud. The Economic Offence Wing (EOW) of the Delhi Police accused him in 2020 of deceiving investors with promises of high returns from crypto investments. The case against Wig gained momentum as 133 investors reported being victims of the scheme. Seeking relief, Wig filed a Public Interest Litigation (PIL) for crypto trading regulations in India, which the Supreme Court eventually rejected.
During the hearing, the Supreme Court advised Wig to seek legal remedies through appropriate channels, specifically for bail. Consequently, the court highlighted its inability to issue directives under Article 32 of the Constitution for such legislative matters. Meanwhile, the status of cryptocurrency trading in India continues to hover in ambiguity. The country is developing a regulatory framework for cryptocurrencies, informed by recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This development could lead to legal legislation within the next several months.
Judiciary-Legislature Gap in Crypto Regulation Evident
The Supreme Court’s decision to reject the PIL signifies a clear demarcation between judicial and legislative responsibilities. Moreover, it reflects the complexities and challenges in regulating emerging technologies like cryptocurrencies. As India moves closer to formulating a comprehensive crypto regulatory framework, this decision reinforces the need for legislative action to address the growing concerns and interests in the crypto market. The outcome of these developments is keenly awaited by investors, legal experts, and the crypto community alike, as it will shape the future of cryptocurrency trading in India.
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