Indian Minister To Conduct Investigation To Expose Illegal Crypto Firms

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • While India is facing unlawful happenings undergoing crypto firms, Mohammed Faizal, asked Indian Finance and Corporate Affairs Minister to investigate and expose these firms.
  • The way Bitcoin and other cryptocurrencies are spreading their arms in India, the volume of fraudulent and scams has also been increased.
  • Thakur revealed that there are only two trading firms of bitcoin and cryptocurrency, namely, the Zeb IT Services and the Unocoin Technologies that were registered by the Corporate Affairs of the Ministry.

While India is facing unlawful happenings undergoing crypto firms, Mohammed Faizal, asked Indian Finance and Corporate Affairs Minister to investigate and expose these firms.

According to a filing received by Lok Sabha, the member of the lower house Faizal proposed three different questions to the Finance and Corporate Affairs State Minister in India Anurag Thakur concerning crypto firms. These queries were put on Tuesday.

Are Crypto firms responsible for violating CAC laws?

The way Bitcoin and other cryptocurrencies are spreading their arms in India, the volume of fraudulent and scams has also been increased.  Putting this into concern, Faizal questioned whether the ministry is aware of this fact.

In his second question, he wanted to know if these firms are violating the laws laid down by CAC (Corporate Affairs Commissions) by not submitting their annual balance sheet to the government.

And lastly, Faizal pointed if the Indian government is filing any lawful act against these digital currency companies.

Reply from the government

The state minister Anurag Thakur while replying to these questions, said that there is nothing stated under Firms Act where the crypto firms are listed.

Thakur revealed that there are only two trading firms of bitcoin and cryptocurrency, namely, the Zeb IT Services and the Unocoin Technologies that were registered by the Corporate Affairs of the Ministry.  

Over the years, the Zeb IT Services has received several prosecutions as they were used for the breach of Firms Act. He said that Zeb IT Services is under liquidation. Moreover, he has not found any condemnation regarding Unocoin.

After the Supreme Court verdict on RBI’s 2018 circular, the cryptocurrency market started to expand in the Indian market. Also, some of the firms have shown their interest in mounting their services in the country.

After the court’s ruling, Unocoin, along with OKEx partner Coindcx and the Binance-owned Wazirx, recommenced fit deposit services within 24 hours. RBI is further challenging Supreme Court for the examination of the verdict.

A partner at Khaitan & Co., Abhishek Rastogi, commented that RBI might go for a review of the Supreme Court’s verdict. Still, as of now, cryptocurrency firms can operate in India. After the RBI’s order, many companies have gone bankrupt, and they may also look to initiate in this respect.

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