The Supreme Court of India on April 16 declined to entertain a plea seeking a regulatory framework for cryptocurrencies, emphasizing that such matters are best addressed through executive policy rather than judicial direction.
According to a PTI report, a bench comprising Justices B.R. Gavai and Augustine George Masih stated that the court could not "lay down the law" on cryptocurrencies, underlining that the issue requires a policy-based approach by the government.
The petition was dismissed with the court making it clear that regulation of digital assets falls outside its jurisdiction.
A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. They exist on decentralised networks using blockchain technology — a distributed ledger enforced by a disparate network of computers.
Bitcoin is the world's largest cryptocurrency, followed by Ether. While Tether is the most traded crypto token in the world due to its value being tied to the United States Dollar.
The counsel appearing for the petitioners claimed several complaints were filed across the country over cryptocurrencies. The counsel sought directions from the apex court to the Centre and others for a regulatory framework on the issue as there was no law to regulate it.
To this, Justice Gavai asked: “It is in the domain of policy makers. How can we issue any such direction? We can't lay down the law”. The bench also asked the petitioners could make a representation on the issue to the Government of India.
The counsel argued several petitioners approached different police authorities but there was no regulatory policy on the issue. “The prayers made in the petition are within the domain of the legislature and the executive. In that view of the matter, we are not inclined to entertain the petition,” the bench reiterated.
However, the bench did add that, “If the petitioners so desired, they could make a representation to the appropriate authority to be considered”.
In January 2024, the Centre informed the SC that it was yet to take a decision on a mechanism to regulate cryptocurrencies and effectively investigate related offences.
