The Indian Supreme Court has rejected a Public Interest Litigation (PIL) that sought to establish regulations and guidelines for cryptocurrency trading in India.
After hearing the plea, the bench, headed by the Chief Justice of India (CJI), stated that the demands of the petitioner are more legislative in nature. Therefore, the plea was dismissed by the bench, including Justice JD Pardiwala and Manoj Misra. The Supreme Court noted that despite the PIL requesting regulations and guidelines for cryptocurrency and its trading, the underlying objective was to secure bail.
The petitioner, Manu Prashant Wig, is currently in custody by the Delhi Police in connection to a cryptocurrency case where he is accused of enticing individuals to invest in crypto with promises of high returns.
Wig served as one of the directors at Blue Fox Motion Picture Limited, where he enticed individuals to invest, leading to a case filed by 133 investors who claimed he deceived them.
Although the Supreme Court rejected the PIL, it permitted the petitioner to pursue legal remedies and approach other relevant authorities while he is in custody.
During the court hearing, the bench advised the petitioner to approach a different court for bail and noted that demands for crypto trading regulations fall within the legislative domain. The court emphasized its inability to issue directives under Article 32 of the Indian Constitution.
The status of crypto trading in India remains unclear due to the absence of standardized rules, guidelines, or specific frameworks for handling cryptocurrencies. India is reportedly developing a cryptocurrency regulatory framework based on joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
The outcome of this framework development could manifest as legal legislation within the next five to six months, as per Cointelegraph’s recent coverage.
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