Orissa Court's Statement: Crypto Dealing is Not Illegal in India

Orissa High Court: Crypto Dealing Not Illegal in India

The Orissa High Court has made a significant statement regarding cryptocurrency, bringing great news to cryptocurrency investors in India. In a recent ruling on a cryptocurrency related case, the Orissa High Court statement that crypto dealing cannot be considered illegal in India. This statement was made by a single bench of Justice Sashikanta Mishra while granting bail to two individuals accused of running a Ponzi/multi-level marketing (MLM) scheme under the guise of a fraudulent cryptocurrency company. Justice Mishra stated that transactions in crypto cannot be deemed illegal, and therefore, they cannot be considered an offense under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, making the accused eligible for bail. The single bench clarified that cryptocurrencies do not constitute money in the context of the Prize Chits and Money Circulation Schemes (Banning) Act, and investments made by the public in crypto cannot be considered deposits under the OPID Act.

According to the information, the petitioners were accused of creating their own trust wallet and enticing people to invest in a cryptocurrency named Yes World Token to build a community network and earn higher returns. These accused individuals also lured investors by promising interest and bonuses based on the number of new members they added.

While delivering the verdict, Justice Mishra stated that the accused had merely persuaded people to trade in crypto. There is no record of any fraudulent inducement of property from any individual. Furthermore, there is no evidence of any funds being transferred to the accused by any individual. Elaborating on his point, Justice Mishra mentioned that due to the adopted procedures, from individuals to the platform, it cannot be concluded that the petitioners deceived anyone. The court specifically noted that the invested amounts by any individual remained secure in their trust wallets. The court said that in this manner, prima facie offence under section 420 is not made out and neither is there any evidence like documents, records to prove the manipulation, so that the offence under section 467/468/471 of IPC can be attracted.

Government of India's Perspective on Cryptocurrency

It is important to note that the Orissa High Court's decision aligns with the Indian government's stance, where cryptocurrency trading profits are subject to a 30% tax and a 1% TDS. The Indian government levies taxes on cryptocurrency trading and mandates that any cryptocurrency exchange operating in India must be registered with the FIU. Given that the government taxes cryptocurrency and monitors related platforms, how can it be considered illegal?

Conclusion

The Orissa High Court's ruling is a landmark decision for cryptocurrency enthusiasts in India, reinforcing the legitimacy of crypto transactions in the country. This verdict not only clarifies the legal standing of cryptocurrency dealings but also provides relief to many investors and traders involved in the crypto market. Feel free to share your thoughts on the Orissa High Court's decision in our comment box.

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