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India’s Supreme Court has attracted public attention with a recent decision. According to this decision, the evaluation of a Public Interest Litigation (PIL) aiming to establish regulations and a guideline for cryptocurrency trading in India has been rejected by the authorities. The Chief Justice of India (CJI) and the panel, after considering the petition, rejected the requested regulations.
What Happened During the Legal Process?
Considering the nature of the petition, the panel including Justices JD Pardiwala and Manoj Misra rejected the application. The Supreme Court stated that despite the PIL filing requesting regulations and guidelines for cryptocurrency assets and trading, the primary purpose of the requested demand was to secure bail.
The fact that the petitioner, Manu Prashant Wig, is currently detained by the Delhi Police in connection with a cryptocurrency case also drew attention to this process. In 2020, the Economic Offences Wing (EOW) of the Delhi Police filed a case accusing Wig of persuading individual investors to invest in the cryptocurrency sector with promises of higher returns.
According to the report, Wig served as an executive at Blue Fox Motion Picture Limited and persuaded individual investors to invest in the cryptocurrency market. During the process, 133 investors who deposited funds reported to the Economic Offences Department (EOW) in Delhi to pursue their legal rights. They initiated the legal process by claiming that Wig deceived them.
Seeking to escape the legal process, petitioner Manu Prashant filed a PIL application in India, requesting legal regulations and a framework for crypto trading, in order to get rid of the situation he is currently in. Despite the Supreme Court’s rejection of the PIL, the panel allowed the petitioner, who is currently in prison, to seek legal remedies and consult with other relevant authorities.
Crypto Sector in India
During the court proceedings, the panel led by CJI Chandrachud advised the petitioner to approach a different court for bail. Court officials expressing concerns about the request for legal regulations regarding crypto trading stated that such requests fall within the legislative domain. The court also emphasized that it cannot issue directives under Article 32 of the Indian Constitution.
The crypto market in India has been subject to debates due to the lack of standardized rules, guidelines, or specific frameworks for dealing with cryptocurrency assets. It is known that India has developed a regulatory framework for cryptocurrencies by benefiting from the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
