A LAWYER APPROACHED BOMBAY HC THROUGH PIL SEEKING CRYPTOCURRENCY MARKET REGULATIONS

Advocate Aditya Kadam filed a Public Interest Litigation before the Bombay High Court, seeking directions to the Central government to formulate laws to oversee the use and trade of cryptocurrency within the country. 

Advocate Kadam highlighted the unregulated and uncontrolled business of cryptocurrency in India, which has affected the investors' rights as there is no mechanism to redress their grievances. He further referred to the Supreme Court judgment in the case of Internet Mobile Association of India v. Reserve Bank of India; he pointed out that despite SC's order, the central government failed to enact any appropriate regulations to protect the citizens. 

"There is a threat of a rise of money laundering cases and terror financing by the trade of cryptocurrency, which the central government has failed to curtail."

He further submitted that he made a representation on September 30, 2021, regarding the underlying problem of the cryptocurrency business. However, to date, Kadam did not receive any response to the representation. The "lackadaisical attitude" of the authorities forced Kadam to approach the HC, seeking its intervention to preserve the citizen's interest.

Grounds in his PIL:

• Lack of transparent policy on cryptocurrency has resulted in huge losses to the revenue of the State;

• Anyone is able to create a trading platform as there are no rules, which is resulting in frauds or terror financing;

• As per available reports, several countries like Singapore, Switzerland, the UK, the USA, European Union, Japan, etc, have enacted laws to deal with cryptocurrency. 

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Author: Papiha Ghoshal