The Supreme Court on Wednesday declined to hear a petition seeking a regulatory framework for cryptocurrencies, stating that such matters fall within the purview of policymakers and not the judiciary.
A Bench comprising Justices B R Gavai and Augustine George Masih observed that the court could not "lay down the law" in such cases, as the issue pertained to legislative and executive domains. The court advised the petitioners to take up the matter with the appropriate government authority instead.
Cryptocurrencies, which are digital or virtual currencies secured by cryptography, are difficult to counterfeit or double-spend. They operate on decentralised blockchain networks maintained by a distributed system of computers. The lack of a central regulatory body has led to concerns and legal complications across the country.
During the hearing, counsel for the petitioners argued that multiple complaints had been filed nationwide involving cryptocurrency-related issues. The plea urged the court to direct the Central government to frame a comprehensive regulatory policy to address these concerns.
However, Justice Gavai questioned how the judiciary could intervene in a matter reserved for lawmakers. “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 reiterated that the prayers made in the petition pertained to the responsibilities of the legislature and the executive. As a result, it declined to entertain the plea. It further clarified that the petitioners were free to make a representation before the Government of India if they wished.
In a related development, the court was also hearing a separate bail application involving an accused linked to cryptocurrency fraud cases registered across multiple states.
In January last year, the Centre had informed the apex court that it was yet to arrive at a decision regarding a mechanism to regulate cryptocurrencies and effectively investigate associated offences.
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