A petition has been filed in the Delhi High Court (HC) seeking a declaration that derivative trading in cryptocurrency without necessary statutory approvals is illegal in India.
The petitioner has also asked the court to declare that transactions and agreements dealing with derivative trading are barred under the Indian Contract Law.
According to the petition, filed through Delhi-based advocate Nipun Saxena, the petitioner transferred money into the digital wallet maintained with a company’s website to trade in cryptocurrencies.
Also Read:
The company is not based in India. The petitioner also claims to have carried out various transactions for different cryptocurrencies.
However, the petitioner felt tricked after realising that there was a "huge disparity" in the value of a cryptocurrency that was reflected on the company's website and the actual value of the same cryptocurrency on "reliable platforms/official websites".
In the wake of this episode, the petitioner urged the Delhi HC to prevent the company from hosting or offering or broadcasting its website in India.
The court has issued a notice to the accused company.
In its defence, the overseas company in question has argued that no registration or regulatory licence is required to offer services in India. The Delhi HC is yet to take a decision in the case.
At present, trading in derivatives like stocks, shares and currencies is legal in India. The only condition is that the transactions should be carried out on a recognised stock exchange or a recognised market association by an entity that is registered in India.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM