Supreme Court: Petition demanding regulatory framework related to cryptocurrency rejected

New Delhi| The Supreme Court refused to consider a petition seeking a regulatory framework on cryptocurrencies. The court has said that it cannot make a law in this regard. Cryptocurrency is a digital or virtual currency that is created securely using cryptography. This makes it virtually impossible to counterfeit or re-spend. Cryptocurrencies exist on decentralized networks using blockchain technology. It is operated and distributed over an uneven network of computers.

The petition seeking direction to create a cryptocurrency regulator came up for hearing before a bench of Justices BR Gavai and Augustine George Masih. The lawyer appearing for the petitioners claimed that several complaints related to cryptocurrencies have been filed across the country.

Counsel said the petitioners are seeking direction to the Center and others for a regulatory framework on the issue, as there is no law to regulate it. Justice Gavai asked, “This is within the jurisdiction of policy makers”. How can we issue such a directive? We can’t legislate.” The bench said that the petitioners can present their stand before the Government of India on this issue.

Counsel argued that many petitioners approached various police authorities, but no regulatory policy exists on the issue. The bench said, “The prayers made in the petition are within the jurisdiction of the legislature and the executive”. Therefore, we are not inclined to consider the petition”

The bench said that if the petitioners wish, they can make their representation before the appropriate authority for consideration. In January last year, the Center had told the top court that no decision has been taken yet on mechanisms to regulate cryptocurrencies and effectively investigate related crimes. The top court made this comment while hearing the bail plea of an accused in a case related to alleged cryptocurrency fraud in various states.