Supreme Court Rejects Petition Seeking Cryptocurrency Regulation, Citing Hidden Motives

Supreme Court's Denial of Cryptocurrency Regulation Petition:

Despite its historical significance for India's crypto industry, the Supreme Court refuses a public interest litigation (PIL) by Manu Prashant Wig. The PIL sought guidelines for regulating crypto trading and mining, alongside directions for prosecuting cases related to digital assets. The court's rejection on Friday is based on its perception that the real intention behind the petition is to secure bail in ongoing legal proceedings, not a genuine effort to address regulatory issues.

Background of the Petition:

The petitioner, Manu Prashant Wig, filed a public interest litigation (PIL) against the Union of India, seeking guidelines for regulating cryptocurrency trading and mining. The PIL also requested direction for prosecuting cases related to digital assets.

Article 32 and Constitutional Approach:

Article 32 of India's Constitution allows individuals to directly approach the Supreme Court to protect their fundamental rights. However, the court, in this instance, deemed the petition's primary purpose as seeking bail in pending cases rather than addressing constitutional concerns related to cryptocurrency regulations.

Court's Perspective on the Petition's True Purpose:

In the order, the court highlights that the petition, filed under Article 32 of the Constitution allowing direct approach for protecting fundamental rights, seems more focused on obtaining bail than addressing the regulatory landscape. The court states, "Though the petition is under Article 32 of the Constitution, it is evident that the real purpose is to seek bail in proceedings which are pending against the petitioner. We are unable to subscribe to this course of action."

Impact on Cryptocurrency Regulation in India:

The rejection underscores the challenges faced by the cryptocurrency industry in India, leaving the regulatory framework uncertain. As the court identifies hidden motives in the petition, the broader discussion around cryptocurrency regulation takes a hit, with potential repercussions for the industry's future in the country.