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Legal

Updated on: Monday, November 29, 2021, 11:00 PM IST

FPJ Legal: Union govt asked to give update on its move to bring in new laws to regulate cryptocurrency

Photo: Representative Image

Photo: Representative Image

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The Bombay High Court on Monday ordered the Union government to place on record, the update on it's laws brought in to regulate the cryptocurrency. This comes after the Union government claimed that is would be tabling it's new laws intended to regulate cryptocurrency and digital currency, in the ongoing winter session.

A bench of Chief Justice Dipankar Datta and Justice Makarand Karnik was hearing a PIL seeking directions to the Union to regulate the use and trade of cryptocurrency within the country. The PIL claimed that the unregulated trade is affecting the rights of investors.

The petition has been filed by advocate Aditya Kadam, which has highlighted the unregulated business of cryptocurrency in the country and the fact that there is no law to redress the grievances of investors.

"The Union government has failed to enact proper norms to protect the interests of citizens, despite a clear directive to it from the Supreme Court," the plea states.

On Monday, advocate Dhirendra Singh, representing the Union, told the bench that Parliament’s Winter Session, which commenced from Monday, will be discussing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which is listed in the session.

Notably, this bill proposes to create a framework for creation of an official digital currency to be issued by the Reserve Bank of India. It also proposes to prohibit all private cryptocurrencies in India, with certain exceptions, to promote the underlying cryptocurrency technology and its uses.

At this, the counsel for the Kadam informed the bench that similar statements were made by the Union way back in 2018 but there has been no development on the issue.

“There is an imminent threat of rise in the number of money laundering cases, illicit trade of drugs, terror financing by trade of crypto currency which the government authorities have failed to curtail,” it adds further.

The petition further points out that despite a detailed representation to the relevant authorities in September 2021, there has been no response yet

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Published on: Monday, November 29, 2021, 11:00 PM IST
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