Delhi High Court Refuses to Regulate Crypto Exchanges in India

The post Delhi High Court Refuses to Regulate Crypto Exchanges in India appeared first on Coinpedia Fintech News

India’s Delhi High Court has refused to regulate cryptocurrency exchanges in India, making it clear that creating crypto laws is the government’s responsibility. The decision came after a crypto investor filed a case against Indian exchange Bitbns, asking the court to introduce regulations and order an investigation into withdrawal issues.

This ruling shows that India still does not have clear crypto laws, leaving investors to depend on existing legal systems. 

Delhi High Court Rejects Investor’s Plea Against Bitbns

The case was filed by investor Rana Handa, who accused Bitbns of restricting withdrawals and manipulating asset values. Handa claimed he invested ₹14.22 lakh ($15,637) in 2021 and faced withdrawal limits, and later the platform showed the incorrect value of his Bitcoin holdings in 2025.

After filing a cybercrime complaint and receiving no response, he approached the Delhi High Court seeking regulatory action and a Central Bureau of Investigation (CBI) probe.

He accused Bitbns of financial mismanagement and asked the court to order a probe and introduce stricter crypto rules.

However, Justice Purushaindrakumar Kaurav dismissed the petition, stating that cryptocurrency exchanges are private entities and do not qualify as “State” under constitutional law. 

Because of this, the court cannot create new regulations or order investigations without proper legal authority. Thus, the court advised the investor to use normal legal channels, such as police complaints or civil courts.

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Why the Court Refused to Regulate Crypto?

The Delhi High Court clarified that courts interpret and enforce laws but do not create new regulations. Crypto regulation falls under the authority of Parliament and government regulators, not the judiciary.

This means courts cannot regulate crypto exchanges unless the government first creates clear crypto laws. 

The ruling shows the current legal gap in India’s crypto sector.

What This Means for Crypto Investors in India

The decision highlights the risks faced by crypto investors in India’s largely unregulated market. Without dedicated crypto laws, investors cannot rely on courts to enforce special protections specific to digital assets.

Instead, users must depend on general financial, civil, and criminal laws when disputes arise with crypto platforms.

Crypto User Still Faces Legal Gap in India

India remains one of the largest crypto markets globally, with 123.35 million active users investing in digital assets. Despite such a strong user base, the country still lacks clear regulatory guidelines governing crypto exchanges.

While the government has introduced crypto taxation, including a 30% tax on gains and 1% TDS, a comprehensive regulatory framework has not yet been implemented.

This regulatory gap creates uncertainty for both users and crypto companies operating in India. 

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