Cryptocurrency: Bombay High Court seeks details from Centre on proposed law

The Bombay High Court has directed the Central government to present its update on cryptocurrency law, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which it claimed will be tabled in the winter session of the Parliament which commenced on Monday..The order was passed by a Bench of Chief Justice Dipankar Datta and Justice MS Karnik in a public interest litigation (PIL) petition seeking directions to the Central government to formulate laws to govern the use and trade of cryptocurrency within the country..The petitioner advocate Aditya Kadam highlighted the unregulated business of cryptocurrency in the country which he claimed affects the rights of the investors as there is no mechanism in law to redress their grievances.Kadam also submitted that he had made a representation to the government on September 30, 2021 drawing attention of the several respondents to the underlying problem of cryptocurrency market. However, till date he did not receive any response to the representation..Advocate DP Singh, special counsel for Union of India, informed the Bench that the Parliament in its winter session, will have a discussion and deliberation over the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.The Bill proposes to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses..Kadam pointed out that a similar statement had been made by the Union in 2018 that they will be considering passing of a Bill, however no action had been taken pursuant to that effect.The Bench however noted that this aspect can be considered later, and that the allegations of the petitioner that Centre has not taken any measures so far is incorrect. .The Bench posted the matter for further hearing on January 17, 2021.

Cryptocurrency: Bombay High Court seeks details from Centre on proposed law

Neha Joshi

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