The Orissa High Court has delivered a significant statement concerning cryptocurrency, which brings positive news to cryptocurrency investors in India. In a recent ruling on a cryptocurrency-related case, the Orissa High Court affirmed that engaging in crypto transactions cannot be deemed illegal in India. The pronouncement was made by Justice Sashikanta Mishra, a single bench judge, who granted bail to two individuals accused of operating a Ponzi/multi-level marketing (MLM) scheme under the guise of a fraudulent cryptocurrency company. Justice Mishra emphasized that transactions involving cryptocurrencies cannot be considered unlawful, consequently ruling out any offense under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act and thereby allowing the accused to be eligible for bail. The judge clarified that cryptocurrencies do not fall under the definition of money as per the Prize Chits and Money Circulation Schemes (Banning) Act, and investments in crypto by the public do not constitute deposits under the OPID Act.
The accused petitioners allegedly created a trust wallet and persuaded individuals to invest in a cryptocurrency called Yes World Token, aiming to establish a community network and earn profits through increased memberships. They enticed investors by offering interest and bonuses based on recruitment numbers.
During the verdict, Justice Mishra emphasized that the accused individuals encouraged people to trade in crypto but no evidence indicates fraudulent property inducement or fund transfers to the accused. The judge further clarified that the procedures followed from individuals to the platform do not suggest deceptive practices by the petitioners. The court highlighted that the invested amounts in the trust wallets of individuals remained secure, leading to the conclusion that no offenses under Section 420 are established prima facie. Additionally, there are no supporting documents or records to substantiate forgery or manipulation, which would trigger offenses under Sections 467/468/471 of the IPC.
Indian Government's Stance on Cryptocurrency
The Orissa High Court's decision aligns with the Indian government's views, which impose a 30% tax and a 1% TDS on profits from cryptocurrency trading. The government mandates that all cryptocurrency exchanges operating in India must be registered with the FIU and closely monitors crypto-related platforms. Considering the government's regulations and taxation on cryptocurrencies, it contradicts the notion of crypto transactions being illegal.
Conclusion
The ruling by the Orissa High Court serves as a landmark decision for cryptocurrency enthusiasts in India, affirming the legality of crypto transactions within the country. This verdict not only clarifies the legal status of cryptocurrency dealings but also offers reassurance to numerous investors and traders participating in the cryptocurrency market. Share your perspectives on the Orissa High Court's judgment in the comments section.
