Legal Challenges to Cryptocurrency and its Guardian-Less Victims in India: A Critical Victimological Analysis

Abstract

AbstractThe COVID-19 pandemic and lockdown pushed several groups of traders to rely on cryptocurrency as one of the chosen tools for commercial transactions. India is no exception. Because of its notorious misuses by criminal gangs, the Reserve Bank of India (RBI) declared cryptocurrency as derecognized. Consequently, the Indian parliament also created a draft bill titled Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019 (the Bill), which not only derecognizes the currency or the use of it for any commercial purposes, it also makes the investors, exchanges and agencies dealing with cryptocurrency criminally liable. Later, the Supreme Court of India in 2020 set aside the above-mentioned RBI guidelines banning cryptocurrency. But this has not nullified or suggested any amendment for the Bill. This article argues that due to this legal confusion, cryptocurrency investors, traders, exchanges and agencies, etc. have become guardian-less victims who may not be eligible to claim basic rights of victims as has been established by the United Nations Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power. In such a legal tangle, it is necessary to analyse the issues from cyber-victimological perspectives for providing functional suggestions for restitution of justice.