Bombay high court asks Centre for update on proposed cryptocurrency bill

The court is hearing a PIL seeking directions for the government to enact appropriate laws to address the growing threat of unregulated cryptocurrencies and malpractices of trading platforms
Advocate Aditya Kadam, the petitioner, said investors face problems as their rights were being violated and their investments were at risk as the cryptocurrency business in India is unregulated. (Getty Images/iStockphoto)
Advocate Aditya Kadam, the petitioner, said investors face problems as their rights were being violated and their investments were at risk as the cryptocurrency business in India is unregulated. (Getty Images/iStockphoto)
Updated on Nov 30, 2021 12:11 AM IST
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ByK A Y Dodhiya

The Bombay high court on Monday directed the Union government to update it on the proposed cryptocurrency legislation expected to be tabled during Parliament’s ongoing winter session.

The high court was hearing a public interest litigation (PIL) seeking directions for the government to enact appropriate laws to address the growing threat of cryptocurrencies and malpractices at trading platforms. The petition, filed by advocate Aditya Kadam, stated that in the absence of appropriate legislation and statutory authority, aggrieved persons do not have a redressal mechanism.

Investors face problems as their rights were being violated and their investments were at risk as the cryptocurrency business in India is unregulated, Kadam said.

The HC bench of chief justice Dipankar Datta and justice M S Karnik then asked the Centre to update it on the proposed legislation and posted the matter for hearing on January 17, 2022..

Also Read: No proposal to recognise bitcoin as currency, finance ministry says in Lok Sabha

A bill seeking “to prohibit all private cryptocurrencies in India” is among 26 legislations planned to be brought to Parliament in the winter session, which started on Monday.

Kadam argued that the Centre had made a statement regarding the issue in 2018 as well, but no action was taken thereafter. The court said it would take up the issue at a later stage.

India currently has no regulation on cryptocurrencies, a set of decentralised digital currencies such as Bitcoin and Ethereum that are not overseen by any sovereign banking regulator.

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Monday, January 24, 2022