No SIT into BitBNS crisis; Delhi HC dismisses plea, cites lack of material

The Delhi High Court disposed of a plea for an SIT probe into the alleged financial crisis at crypto exchange BitBNS. The court found insufficient material, noting no FIR was filed, and stated it cannot regulate private entities like exchanges.

The Delhi High Court on February 11 disposed of a petition that sought the intervention from Court regarding an alleged financial crisis impacting users of BitBNS, a major cryptocurrency exchange in India.

Court Denies Plea for SIT Probe

In its order the High court said that there does not seem to be sufficient material placed on record warranting the constitution of a Special Investigation Team. There is no material indicating any exceptional circumstance.The court said that there is no F.I.R. registered at the instance of the petitioner. The court further said, the petitioner may not only take recourse to lodging of an F.I.R., but can also approach the jurisdictional Magistrate in accordance with law.

Stance on Private Entities and Regulation

The court also stated that cryptocurrency exchanges are private entities and do not qualify as "State" under constitutional law. The court further said that it cannot create new regulations or order investigations without proper legal authority.

Original Demands of the Petition

The petition, had sought directions to mandate SEBI, the Union of India, the Ministry of Finance, the Reserve Bank of India, and the Ministry of Electronics and IT to establish a regulatory framework and policies for overseeing cryptocurrency exchanges and transactions to ensure investor protection.It had also requested the formation of a Special Investigation Team (SIT) under the Central Bureau of Investigation (CBI) to file an FIR and conduct a thorough investigation into alleged financial fraud. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)