India's Supreme Court Dismisses Petition Seeking Government Guidelines For Crypto

The Supreme Court of India dismissed a petition seeking governmental guidelines for cryptocurrency trading and mining, citing misuse of constitutional provisions for personal legal relief.

The petition, filed by Manu Prashant Wig against the Union of India and others, aimed to compel the government to establish regulatory measures for cryptocurrencies.

The Court clarified its position, stating, "Though the petition is under Article 32 of the Constitution, it is evident that the real purpose is to seek bail in proceedings which are pending against the petitioner. We are unable to subscribe to this course of action."

Article 32 allows individuals to approach the Supreme Court to protect their fundamental rights.

Wig, associated with Blue Fox Motion Picture Ltd. and Tokenz Ltd., a centralized cryptocurrency exchange, is currently detained.

He faces charges by the Economic Offence Wing of Delhi Police for allegedly inducing investments in a fraudulent scheme, as reported by Bar and Bench.

The case involves over 130 victims claiming fraud.

The Indian cryptocurrency landscape saw a resurgence in 2020 after the Supreme Court overturned a 2018 directive from the Reserve Bank of India that banned banks from crypto transactions.

However, stringent tax laws introduced in 2022 and enforcement actions against crypto exchanges have created a challenging environment for the industry.

According to PRS, a legislative research body, Indian courts cannot direct the legislature to frame laws.

This situation reflects the principle of separation of powers, though there have been exceptions where the Supreme Court has influenced legislation.

The Indian government has previously informed the Court that lawmaking is solely Parliament's domain.

In the international arena, India, during its G20 presidency in September 2023, advocated for global crypto guidelines, despite lacking domestic legislation.

A pending crypto bill since 2021 and the government’s indication of deciding its stance in the coming months have kept India's position on cryptocurrency in focus.

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