Delhi High Court : Why Investors Can’t Force Regulation or CBI Probe

In a big decision for India’s crypto world, the Delhi High Court on February 11 turned down pleas from crypto investors. They wanted strict rules for crypto exchanges, a CBI probe into Bitbns, and money back for their losses. This ruling in cases like Aditya Malhotra v Union of India and Rana Handa v Bitbns Internet shows clear limits on what courts can do in crypto disputes.

What Happened in the Cases?

The main petitioner, Rana Handa, said he put in ₹14.22 lakh on Bitbns. He faced problems withdrawing his money and issues with how his Bitcoin value was shown. He asked the court for:

• Stricter rules for all crypto exchanges in India.
• A Special Investigation Team (SIT) under the CBI to probe Bitbns.
• Release of his locked funds right away.

In the other case, Aditya Malhotra and other investors made similar demands. They blamed Bitbns for losses and wanted compensation plus a CBI look-in.

Justice Purushaindra Kumar Kaurav said no to all this. He explained that writ petitions can’t fix private fights like this.

Key Reasons Behind the Court’s

The judge gave clear points why the pleas failed:

1. Private Company, Not ‘State’: Crypto exchanges like Bitbns are private firms. Under Article 12 of the Constitution, only ‘State’ bodies face writs. “They are not doing public jobs, so no writ against them,” the court said.
2. No CBI Probe Without Special Need: Courts don’t order CBI probes unless there are rare, big reasons. Here, normal police checks work fine.
3. Compensation Needs Proof: Claims for money back have facts in dispute. These go to civil courts or other forums, not quick writs.
4. Rules Are for Lawmakers: Courts enforce existing laws, not make new ones. “If no rules exist, lawmakers must handle it,” the court noted.

Investors got a tip: Use other paths like filing an FIR and going to a Magistrate if police don’t act.

Bitbns and the Bigger Crypto Hack Picture in India

Bitbns, one of India’s older exchanges, hit trouble with user withdrawals and asset values. This isn’t new. India has seen cases like WazirX hacks where users lost crores. No full crypto law means exchanges run under basic rules like PMLA for money laundering.

Now, most big exchanges register with FIU-IND to follow KYC and AML. But without a dedicated law, users face risks. The court’s call pushes the ball to Parliament for real crypto rules.

What This Means for

This ruling is a wake-up for crypto users:

• Pick Safe Platforms: Choose FIU-registered exchanges. Check user reviews and security audits.
• Don’t Rely on Courts for Quick Fixes: Writs won’t unlock funds from private firms. File police complaints or civil suits instead.
• Push for Regulation: Join groups asking for clear laws. A 30% tax and TDS already exist, but full rules could bring safety.

India’s crypto market is huge – over 20 million users and billions in trades. But events like this slow trust. Global spots like US have SEC rules; India needs something similar soon.

India’s Crypto Regulation: Where Do We Stand?

Right now:

The government eyes G20 talks for global standards. Users hope for licensed exchanges and investor protection funds like in stocks.

Tips to Protect Your Crypto in India Today

While waiting for rules:

1. Use hardware wallets – keep keys offline.
2. Enable 2FA and whitelist withdrawals.
3. Diversify – don’t put all in one exchange.
4. Track taxes with tools like Koinly.
5. If trouble, file FIR under IT Act or cheating laws.

Future Outlook: Will India Get Crypto Laws Soon?

With elections and budget talks, crypto rules might come. The court’s words highlight: Courts can’t force laws, but they can nudge. Investors from Bitbns cases now head to lower courts. Their fight could spark wider change.

This decision balances power – private biz stays private, lawmakers lead on policy. For crypto fans, it’s a reminder: DYOR (Do Your Own Research) and stay safe.

What’s your take? Share in comments if you’ve faced exchange issues.

FAQs on and Crypto in India

Q: Can I get my Bitbns funds via court?
A: Not via High Court writs. Try police FIR or civil suit.

Q: When will India regulate crypto fully?
A: No set date, but FIU rules apply now.

Q: Is Bitbns safe?
A: Check latest news; use registered platforms.

Stay updated on Indian crypto news for more.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

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