Court to look into legality of trading in cryptocurrency | Delhi News

New Delhi: In a first-of-its-kind case, a court has agreed to examine the legality of “derivative trading” in cryptocurrency. It was hearing a complaint filed against an overseas entity for allegedly carrying out business activities in derivative trading in cryptocurrency in India illegally through its website and mobile application.
Trading in derivatives such as stocks, shares and currencies is legal in India, provided it is carried out on a recognised stock exchange or a recognised market association by an entity registered and incorporated in India, and there is actual physical delivery of goods.
The court has issued notice to the company on the complaint, filed through advocate Nipun Saxena, that said the petitioner had transferred money into the digital wallet maintained with the company’s website to trade in cryptocurrencies.
The petitioner carried out various transactions for different cryptocurrencies only to realise that the trading was based on speculation and that no actual delivery was made to him. “There was a huge disparity in the value of a cryptocurrency that was reflected on the website and the actual value of the same cryptocurrency on reliable platforms/official websites,” the complaint claimed.
The complaint has sought a declaration that such a business activity without obtaining necessary statutory approvals in India is illegal and that various transactions and agreements dealing with derivative trading are barred under Indian Contract Law. The company argued that no registration or regulatory licence was required to offer services in India.
The petitioner also sought that the company be restrained from hosting or offering or broadcasting its website in India.