Cuttack, India – In a landmark decision, the Orissa High Court has ruled that dealing in cryptocurrency is not illegal under Indian law. This ruling came from a case involving two individuals accused of running a fraudulent scheme using a fake cryptocurrency.
The case centered on two people who allegedly operated a Ponzi scheme with a digital currency called Yes World Token. They promised investors high returns and bonuses for recruiting new members. However, the court found no evidence that they had tricked anyone into giving them money.
Cryptocurrency Not Money: Justice Sasikanta Mishra stated that cryptocurrency is not considered money under the Prize Chits and Money Circulation Schemes (Banning) Act.
No Deposit: Investments in cryptocurrency do not count as deposits under the Odisha Protection of Interests of Depositors Act (OPID Act).
No Illegal Activity: The court declared that dealing in cryptocurrency cannot be treated as illegal. Justice Mishra said, "Mere dealing in cryptocurrency cannot be treated as an offense under the OPID Act."
The court found no proof that the accused had dishonestly induced anyone to transfer money to them.
This ruling clarifies that not all cryptocurrency activities are illegal and distinguishes between legitimate investments and fraudulent schemes. The Orissa High Court's decision provides a clearer understanding of the legal status of cryptocurrency in India.
