Supreme Court of India rejects a petition to establish rules for cryptocurrency trading

Nov 15, 2023
The Supreme Court of India has refused to consider a petition aimed to establish rules and framework guidelines for cryptocurrency trading in India. The applicant is currently in custody on charges of encouraging people to invest in cryptocurrency.

Manu Prashant Vig’s lawsuit against the Indian Union was dismissed. Despite the compliance of the petition with article 32 of the Constitution, the purpose of this claim is the release on bail of the applicant against whom the court proceedings are being conducted.


Article 32 of the Constitution of India allows a person to apply directly to the Supreme Court to protect their civil rights.

According to Delhi police, the director of Blue Fox Motion Picture Limited, Vig, is currently in custody on charges of encouraging people to invest in a crypto scheme. More than 130 victims said they were deceived by this person.

In 2020, the Supreme Court of India ruled against a decision made earlier by the country’s central bank, which effectively prohibited banks from supporting or participating in crypto transactions. In 2022, India introduced tough taxes, which the cryptocurrency industry perceived as a “shadow ban”. Payment systems have shut down local cryptocurrency exchanges, and the government has taken enforcement measures against at least 10 companies.

According to the law research organization PRS, courts in India do not have the authority to instruct the legislature to draft a law, but there are rare cases when the Supreme Court has challenged such a “separation of powers”. However, the Government of India has stated that only Parliament can draft and pass a law.

India has not launched a bill on cryptocurrencies since 2021 and makes it clear that it will determine its position in the coming months.

Over the past few months, a wave of fraudulent schemes with cryptocurrencies has taken place in the country, which has led to increased regulation by the authorities.