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
The Bombay high court on Monday directed the Centre to update it on the proposed cryptocurrency legislation expected to be tabled during Parliament’s ongoing winter session.
The direction came as the court is hearing public interest litigation seeking directions for the government to enact appropriate laws to address the growing threat of cryptocurrencies and the malpractices of trading platforms. The plea says in the absence of appropriate legislation and statutory authority, aggrieved persons do not have a redressal mechanism for their complaints.
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.
A bill seeking “to prohibit all private cryptocurrencies in India” is among 26 pieces of legislation planned to be brought to Parliament in the session.
India currently has no regulation for cryptocurrencies – a set of decentralised digital currencies such as Bitcoin and Ethereum that are not regulated by any sovereign banking regulator.