FACTS LEADING TO THE CASE
Bitbns, a cryptocurrency exchange in India, is under scrutiny due to numerous complaints from investors alleging non-return of funds. Investors have been unable to withdraw their investments, with some claiming losses ranging from ₹20,000 to ₹1.5 crore. The issues began in mid-2024 and escalated over time, with many complaints going unanswered. A complaint filed with the National Cybercrime Portal led to a Delhi Police investigation, which found that Bitbn’s founders are untraceable and may have left India. The reasons for the alleged withholding of funds remain unclear, but the incident highlights the risks associated with unregulated cryptocurrency platforms and the need for stringent regulatory oversight.
DELHI HIGH COURT ORDER
On January 9, 2025, a hearing took place before the Single Bench of Delhi High Court whereby Justice Sachin Datta issued notice to the Respondents in a Writ Petition invoked by the victims of BitBNS exchange that sought investments from all across India into Crypto Currencies.
Delhi High Court has sought a reply from the Ministry of Finance, Reserve Bank of India, and Security Exchange Board of India on the prayers of the Petitioners/ Victims on the regulations of the Crypto Currencies in India. The court directed the Respondents MoF, RBI and SEBI to respond within 4 weeks from the date of the order.
The Hon’ble Court asked the Counsels of the Petitioners, Mr Dinesh Jotwani, Advocate, Supreme Court of India, about the current regulations on cryptocurrency in India. The counsel replied that currently, there are no regulations and only the Finance Act 2022 has imposed taxes on Virtual Digital Assets.
This could be a landmark case that will enable all the relevant departments of the Government of India to formulate a policy that impacts the regulation of Crypto Currencies in India.