Indian Supreme Court Declines PIL on Cryptocurrency Regulation

Listening to the petition, the Chief Justice of India-led bench observed that the petitioner’s requests were more suited for legislative action. The Indian Supreme Court refused to entertain a Public Interest Litigation (PIL) seeking the establishment of rules and guidelines for cryptocurrency trading in India.

The bench, including Justice JD Pardiwala and Manoj Misra, after hearing the plea, concluded that the petitioner’s demands fell under legislative jurisdiction and dismissed the plea. The court acknowledged that although the PIL sought regulations for cryptocurrency trading, its primary aim was to obtain bail.

The petitioner, Manu Prashant Wig, is currently in custody of the Delhi Police for a cryptocurrency-related case. In 2020, the Economic Offence Wing (EOW) of the Delhi Police charged Wig, who was a director at Blue Fox Motion Picture Limited, with luring investors into crypto investments with high return promises. After victims reported the fraud, 133 investors filed a case against Wig for deceit.

Manu Prashant, seeking release from custody, filed the PIL for establishing a crypto trading framework in India. Despite the Supreme Court’s refusal, the court allowed the petitioner, now in jail, to seek other legal remedies and approach appropriate authorities. During the hearing, CJI Chandrachud’s bench suggested that the petitioner seek bail from a different court and noted that regulatory demands for crypto trading belong to the legislative sphere, emphasizing the court’s limitations under Article 32 of the Indian Constitution.

India’s stance on crypto trading remains uncertain due to a lack of clear regulations. The country is reportedly working on a crypto regulatory framework, using insights from the International Monetary Fund (IMF) and the Financial Stability Board (FSB), with potential legal legislation expected in the next five to six months, according to Cointelegraph.

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