Indian Supreme Court Dismisses Cryptocurrency PIL; Future Trading Rules Remain in Limbo
Summary:
The Supreme Court of India dismissed a Public Interest Litigation (PIL) that sought regulations for cryptocurrency trading, remarking the demands seem more legislative than judicial. Manu Prashant Wig, petitioner and involved in a cryptocurrency case, aimed to secure bail through this PIL. Despite the dismissal, the bench allowed Wig to seek legal aid and contact other relevant authorities. The lack of structured rules and guidelines leaves the future of crypto trading in India uncertain, though a regulatory framework, influenced by the IMF and the Financial Stability Board recommendations, could become law within the next five to six months.
In a recent development, the Supreme Court of India opted not to entertain a Public Interest Litigation (PIL) petition seeking to formulate rules and a structured guideline pertaining to cryptocurrency trading in India. The Chief Justice of India (CJI)-led bench, having listened to the plea, remarked that the petitioner's demands seem more legislative than judicial. The request was consequently dismissed by the bench members, including Justices JD Pardiwala and Manoj Misra, owing to its legislative nature. The court observed that the ultimate intent of the petitioner's PIL aiming to create crypto trading guidelines, seems to acquire bail. The petitioner, Manu Prashant Wig, who is currently under Delhi Police's custody in context with a cryptocurrency case, has been named in a case filed by the Economic Offences Wing (EOW) of Delhi Police in 2020. Wig has been accused of luring people to place their money into cryptocurrency, with the bait of higher returns. The report suggests that Wig, while serving as a director at Blue Fox Motion Picture Limited, attracted individuals to invest, leading to people reporting the scam to the Delhi-based EOW. A total of 133 investors claimed being misled by Wig. In an attempt to secure relief from judicial custody, Manu Prashant filed a PIL to set regulations and a structure for cryptocurrency trading in India. Despite the PIL being rejected by the Supreme Court, the bench allowed the incarcerated petitioner to seek legal help and appeal to other relevant authorities. During the court's proceedings, the CJI-led bench suggested that the petitioner should seek bail from a different court. While expressing its doubts regarding the plea for crypto trading regulations, the court stated it falls under the legislative purview, and hence the court cannot issue directives according to Article 32 of the Indian Constitution. The future of crypto trading in India stands in the grey area due to the absence of set rules, guidelines or specific frameworks to govern cryptocurrencies. Reportedly, India is planning on shaping a cryptocurrency regularity framework, taking cue from joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This might result in forming a legal legislation in the coming five to six months, according to recent reports by Cointelegraph.
Published At
11/11/2023 10:40:49 AM
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