The Indian Supreme Court has rejected a Public Interest Litigation (PIL) seeking regulations and guidelines for cryptocurrency trading in the country. The bench, led by the Chief Justice of India (CJI), stated that the petitioner's requests have a legislative nature. Despite the PIL's focus on cryptocurrency regulations, the court observed that the underlying objective was to secure bail for the petitioner, Manu Prashant Wig, currently in custody for his involvement in a cryptocurrency case.
Wig, accused by the Economic Offence Wing (EOW) of the Delhi Police of luring individuals into investing in cryptocurrency with promises of higher returns, filed the PIL while seeking relief from judicial custody. The court, including Justice JD Pardiwala and Manoj Misra, dismissed the PIL but allowed Wig to pursue legal remedies and approach other relevant authorities.
During the hearing, the CJI-led bench advised the petitioner to seek bail from a different court, expressing reservations about the PIL's focus on cryptocurrency trading regulations. The court emphasized that such demands fall within the legislative domain, and it cannot issue directives under Article 32 of the Indian Constitution.
The status of cryptocurrency trading in India remains uncertain due to the lack of standardized rules and guidelines. India is reportedly working on a regulatory framework for cryptocurrencies, drawing from recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The development of a cryptocurrency regulatory framework is expected to take shape as legal legislation within the next five to six months.
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