In a landmark judgment, an Indian court has reaffirmed the legal status of cryptocurrency in the country, while granting bail to the CEO of Yes World, who was arrested in connection with a crypto-related fraud case.
The Orissa High Court on Tuesday ruled that cryptocurrency trading and transactions are neither banned nor illegal in India. The decision came as a major relief to the crypto industry, which has been operating in a regulatory grey area.
The court was hearing a bail plea filed by Sandeep Chowdhury, the CEO of Yes World, who was arrested on charges of defrauding investors through a Ponzi scheme disguised as a cryptocurrency business. The court granted bail to Chowdhury, citing the absence of any official ban or illegality regarding cryptocurrency trading in India.
Justice Aditya Kumar Mohapatra, presiding over the single-judge bench, observed that there is no specific law prohibiting cryptocurrency trading in the country. The court, however, cautioned investors to exercise due diligence while investing in cryptocurrency-related ventures.
The judgment is expected to have far-reaching implications for the crypto industry in India. It provides a much-needed clarity on the legal status of cryptocurrencies and could boost investor confidence. However, experts say that the government still needs to come up with a comprehensive regulatory framework for the industry.
The case against Yes World and its CEO is still under investigation. The company and its promoters are accused of collecting crores of rupees from investors by promising exorbitant returns on cryptocurrency investments.
The court’s decision to grant bail to Chowdhury has also raised questions about the regulatory oversight of the crypto industry. Critics argue that the government needs to tighten the regulatory screws to protect investors from fraud.
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