Delhi High Court Responds to Petition for Stricter Cryptocurrency Regulations
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New Delhi, Jan 9 (NationPress) The Delhi High Court has decided to investigate a petition that advocates for stricter regulations concerning cryptocurrency or virtual digital assets (VDA).
The petition underscores the difficulties faced by BitBNS users, who have been unable to access their funds from their wallets since February 2022 following a cyberattack.
Upon issuing notice, a panel led by Justice Sachin Datta requested responses from various entities, including the SEBI, RBI, and the Union Finance and Electronics and Information Technology (MeitY) Ministries regarding this issue.
The petition claims that countless users have experienced prolonged delays in retrieving their legitimate funds from BitBNS, a prominent cryptocurrency exchange in India, which has resulted in considerable financial strain and distress for numerous families.
Furthermore, inconsistencies in portfolio valuations and wallet balances that do not correspond with market trends have led to additional financial losses and emotional turmoil, it mentioned.
The petition, submitted through advocate Dinesh Jotwani, stated that BitBNS has not provided solutions to these issues, despite repeated complaints and requests from users, leaving crores of user funds inaccessible.
"Efforts by users to pursue legal action, including a joint complaint to the National Cyber Crime Portal, have proven ineffective due to jurisdictional and infrastructural hurdles," the petition asserted.
Highlighting the necessity for informed engagement with VDAs in India, the petitioners requested the establishment of a Special Investigation Team (SIT) and a Central Bureau of Investigation (CBI) probe to investigate the alleged fraud and to create guidelines for VDA service providers to ensure transparency and compliance.
According to the petition, BitBNS originally marketed itself as an easy-to-use platform for individuals to invest in virtual digital assets (VDAs) in India, gaining traction for its user-friendly interface that allowed seamless deposits and trading in various cryptocurrencies.
"However, since 2022, BitBNS has imposed withdrawal restrictions, setting arbitrary limits as low as Rs 5,000 per day. Users have also raised significant concerns about inconsistencies in their portfolio valuations and wallet balances, which have not matched market prices during the same timeframe. These irregularities, along with the inability to withdraw funds, have inflicted severe financial burdens and emotional distress on users of the platform," it stated.
Despite numerous complaints and tickets submitted by the affected users, the petition claimed that the platform has inadequately addressed their concerns, leaving a substantial amount of money stagnant with no resolution.
