Cryptocurrencies are digital or virtual currencies that are protected by cryptography, which makes them almost impossible to duplicate or cheat. They operate on decentralised blockchain networks, where a large number of computers across the globe keep track of the transactions using a shared public ledger.
NEW DELHI: The Supreme Court of India on Wednesday refused to consider a plea asking for rules and regulations to control cryptocurrencies, saying that it is not the court’s job to make laws and that the issue falls under the responsibility of the government.
A bench of Justices B R Gavai and Augustine George Masih heard the matter and made it clear that only the legislature and the executive can decide such issues, not the judiciary.
Cryptocurrencies are digital or virtual currencies that are protected by cryptography, which makes them almost impossible to duplicate or cheat. They operate on decentralised blockchain networks, where a large number of computers across the globe keep track of the transactions using a shared public ledger.
The petitioners, through their lawyer, told the court that many complaints about cryptocurrency fraud had been filed across different parts of the country. The petitioners wanted the court to order the central government and other authorities to create a proper legal structure to manage and control cryptocurrencies, as there is currently no law in India for this purpose.
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In response, Justice Gavai clearly asked:
“It is in the domain of policy makers. How can we,” Justice Gavai asked, “issue any such direction? We can’t lay down the law”.
The bench further said that the petitioners were free to approach the Indian government and make their suggestions directly.
“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 said.
They added that:
“If the petitioners so desired,” they could “make a representation to the appropriate authority to be considered.”
Background
This is not the first time the issue of cryptocurrency regulation has come up before the top court. In January last year, the Central Government had informed the Supreme Court that it was still thinking about how to regulate cryptocurrencies and how to properly investigate crimes related to them.
The Supreme Court was also dealing with a separate bail request from a person accused of being involved in cryptocurrency frauds in different states.
