The Supreme Court of India has declined to entertain a Public Interest Litigation (PIL) seeking the formulation of a regulatory framework and guidance for cryptocurrency trading in the country. The bench, led by the Chief Justice of India (CJI), stated that the petitioner's demand was more legislative in nature, and consequently, the plea was dismissed. The Supreme Court observed that despite the petitioner filing a PIL for cryptocurrency regulation and guidance, the underlying objective appeared to be obtaining bail.
The petitioner, Manu Prashant Wig, is currently detained by Delhi Police in connection with a cryptocurrency case. The Delhi Economic Offenses Wing (EOW) filed a case in 2020, alleging that Wig had attracted individuals to invest in cryptocurrencies by promising higher returns. Wig, one of the directors of Blue Fox Film Co., Ltd., reportedly lured victims to invest personally, leading to fraud complaints by 133 investors.
In seeking relief from judicial detention, Wig filed a PIL requesting regulations and a framework for cryptocurrency trading in India. While the Supreme Court dismissed the PIL, it allowed Wig, who is in jail, to seek legal remedies through other relevant authorities. During the court hearing, the CJI-led bench recommended that the petitioner seek bail from other courts, expressing reservations about issuing directions for cryptocurrency trading regulations, as such matters fall within the legislative domain. The court clarified that it cannot issue directions under Article 32 of the Constitution of India.
The status of cryptocurrency trading in India remains uncertain due to the absence of standardized rules and guidelines or a concrete framework for dealing with cryptocurrencies. Reports suggest that India is working on a cryptocurrency regulatory framework based on joint recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). This development is anticipated to result in legal legislation within the next five to six months, addressing the regulatory concerns surrounding cryptocurrency trading in the country.
