- High Court’s ruling confirms cryptocurrencies are not illegal under Indian law.
- Rising crypto popularity underscores the need for effective regulation to protect investors globally.
A High Court in India recently gave a judgment that may have far-reaching implications for Indian crypto holders.
The court ruled that engaging in cryptocurrency transactions does not contravene Indian law. This stemmed from a case involving individuals accused of committing a Ponzi scheme.
Judicial clarity
Clarifying the status of cryptocurrency in India, Justice Sasikanta Mishra of the Orissa High Court concluded that cryptocurrency does not fall under the definition of “money” as outlined in the Prize Chits and Money Circulation Schemes (Banning) Act.
Furthermore, investments made by the public in cryptocurrency cannot be classified as deposits under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act.
Justice Mishra in his ruling said,
“Mere dealing in cryptocurrency cannot be treated as illegal in any manner. Hence, it cannot be treated as an offense under the OPID Act.”
Crypto adoption on the rise
This decision underlined a broader global trend where cryptocurrencies have increasingly become recognized and integrated into mainstream financial frameworks.
Echoing similar sentiments, Kashif Raza, Founder of Bitmining, noted
Source: Kashif Raza/X
According to a recent global survey conducted by Statista, India has emerged as one of the top three countries in terms of the percentage of respondents who reported owning or using cryptocurrencies.
Source: Statista
This survey encompassed 56 countries and territories, reflecting trends from 2019 to 2024.
Is lack of regulation an issue?
As cryptocurrencies become more popular, so do scams and frauds in the crypto space. Hence, effective regulation is crucial to protect investors from Ponzi schemes, fake ICOs, phishing attacks, and other fraudulent activities.
Echoing similar sentiments, India’s Minister of State Finance, Pankaj Chaudhary said,
“Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”
Is the crypto market booming or bleeding?
Meanwhile, the cryptocurrency market experienced little change, with the global crypto market cap at $2.44 trillion, reflecting a slight 0.30% decline in the past day as per CoinMarketCap.
Major tokens such as Bitcoin [BTC], Solana [SOL], Ripple [XRP], Dogecoin [DOGE], and others displayed declines with red candlesticks on their daily charts.
However, few altcoins like Ethereum [ETH], Shiba Inu [SHIB], and Uniswap [UNI] indicated bullish sentiment amidst the volatility.