In a notable decision on Wednesday, the Supreme Court declined to examine a plea calling for a regulatory framework on cryptocurrencies, stating that such matters fall under the jurisdiction of policymakers.
The plea, presented before a bench comprising Justices B R Gavai and Augustine George Masih, sought judicial intervention to direct the Centre and other stakeholders to establish regulations governing the use of cryptocurrencies. Cryptocurrencies, which are digital or virtual currencies secured by cryptography, operate on decentralized networks underpinned by blockchain technology.
Counsel for the petitioners highlighted numerous complaints filed across the nation concerning the management and transactions of cryptocurrencies. They argued for the need for a regulatory framework, noting the absence of any existing laws to oversee this digital currency space.
However, Justice Gavai responded, emphasizing the judiciary’s limitations in such matters. “It is in the domain of policymakers. How can we issue any such direction? We can’t lay down the law,” he remarked.
The bench further advised that the petitioners could make representations to the Government of India, suggesting that the matter is more suited for legislative and executive consideration.
This decision comes amidst ongoing discussions about the need for cryptocurrency regulation. In January of the previous year, the Centre reported to the Supreme Court that it was still deliberating on a mechanism to regulate cryptocurrencies and to effectively investigate related offences.
The court was also hearing a separate case involving a bail plea of an individual accused of cryptocurrency fraud across various states. The bench reiterated that the requests made in the plea were squarely within the legislative and executive realms, ultimately deciding not to entertain the petition. If the petitioners so desired, they could approach the appropriate authority with their concerns.
