Supreme Court says no to plea for regulatory framework on cryptocurrencies. Here’s why…

The Supreme Court of India (SC) today refused to hear a plea for regulation of cryptocurrencies, according to a PTI report. It listed out the reasons for why the matter must be handled through government policy and not courts.

Hearing a petition on April 16, a Supreme Court bench comprising Justices BR Gavai and Augustine George Masih said it couldn't “lay down the law” in regards to cryptocurrencies.

What is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. They exist on decentralised networks using blockchain technology — a distributed ledger enforced by a disparate network of computers.

Bitcoin is the world's largest cryptocurrency, followed by Ether. While Tether is the most traded crypto token in the world due to its value being tied to the United States Dollar.

Bitcoin price today: At time of writing, data on CoinMarketCap showed that Bitcoin is trading down 2.50 per cent compared to the previous day, at $83,759.49, as Donald Trump's tariffs continue to push investors towards safe haven assets such as gold.

Why SC Say ‘No’ to a Plea Over Crypto Regulation?

The counsel appearing for the petitioners claimed several complaints were filed across the country over cryptocurrencies. The counsel sought directions from the apex court to the Centre and others for a regulatory framework on the issue as there was no law to regulate it.

To this, Justice Gavai asked: “It is in the domain of policy makers. How can we issue any such direction? We can't lay down the law”. The bench also asked the petitioners could make a representation on the issue to the Government of India.

The counsel argued several petitioners approached different police authorities but there was no regulatory policy on the issue. “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 reiterated.

However, the bench did add that, “If the petitioners so desired, they could make a representation to the appropriate authority to be considered”.

In January 2024, the Centre informed the SC that it was yet to take a decision on a mechanism to regulate cryptocurrencies and effectively investigate related offences.

(With inputs from PTI)