Author: Jagdish Kumar, India
Though the Reserve Bank of India (RBI) have through its circular made it very clear and asked citizens not to invest in virtual and cryptocurrencies, the existing law allows Indian investors dealing in cryptocurrencies.
This was revealed by a lawyer practicing at High Court of Delhi on how the interest of the crypto investor in protected under Indian law despite the absence of any crypto regulatory regime. The investor can still approach the court of law against any deficiency in service by the cryptocurrency exchange.
Mohammed Danish, a lawyer said that As per the Indian Contract Act, 1872, any contract which is entered into by two competent(Major, Sound mind and not barred by any law to enter into contract) persons (Legal or Natural) out of their free will, for a lawful object, supported by a lawful consideration and not expressly declared void by the law, is a legally valid contract. Since in the case of cryptocurrency services, contracts are formed through electronic means and therefore with a view to validate e-contracts, Section 10A of the Information technology Act, 2000 reinforces the validity of the contracts so made on electronic devices.
He also said that if a exchange don’t provide service, a platform service user/investor can file a complaint with the consumer forum under Section 12 of the Consumer Protection Act for any deficiency in service on the part of the cryptocurrency exchange.
This was done in the case of India’s one of the leading crypto exchange, Coinsecure, which lost 438 Bitcoins in online theft. The company had filed a complaint that their coins have been robbed from the virtual wallet. After this, the company initiated a refund and final settlement plan, which will end on 30 June 2018.
Danish however said that though dispute arisen in respect of the use of crypto exchange services is not maintainable before the consumer forum, but one can approach civil court, as there are various judgments explained the concept of commercial purpose and if the same is seen in the present context of cyrpto exchange.
Image Credit: kryptomoney.com