- Recent deliberations in the parliament have given a signal that very soon crypto will be banned in the country
- Securities Exchange Board of India has been constantly forcing the IPO crypto holder to liquidate their digital assets
- Experts suggest that the new bill would give a three to six month period for the liquidation of crypto holdings
Lot of regulations are set in India regarding the exchange and flow of cryptocurrencies. Recently Securities Exchange Board of India has taken to force a handful of important market promoters to decline cryptocurrencies. This includes any kind of exchanges including cryptocurrencies. They have been constantly requested and now forced to ditch the usage of cryptocurrencies. This seems to be another step towards crypto banning and anti-cryptocurrency movement by the Indian government. This is done in the name of crypto regulations.
It is anticipated that in the near future all the holders of cryptocurrencies, i.e., the IPO promoters will be forced in one way or the other to sell all their holdings. They will be asked to do the needful before they get permitted for raising funds. It is also believed that SEBI might ban the crypto holding IPO officers from raising funds in the future. This is if they fail to adhere to the regulations.
The Anticipation of The Banning in the Country
An extension of the set of instructions given by the Securities Exchange Board of India. This is for all the IPO systems including the security lawyers, stakeholders and merchant banks with respect to cryptocurrencies. In a recent ET interview of the securities lawyer, he mentioned that as per government instructions in regards to cryptocurrencies, the companies failing to meet the instructions could be very risky as per the market regulators. The investors might face severe problems if they happen to hold assets that are deemed illegal in a particular country.
Several experts have been speculating that very soon a bill will be passed deeming cryptocurrencies null and void. This means banning it. Based on the present deliberations in the parliament of the country, the cryptocurrency holders will receive a deadline of three to six months to liquidate all their assets before the annulment of the crypto provision in the state. They will not be allowed to raise funds once the currency gets banned.
SEBI’s constant fear of malpractices by the IPO officers
At the beginning of this month, a few reports showed a speedy setting and passing of the crypto bill by the parliament. Even if the currency is not banned SEBI seems to continue to indulge and force the IPO crypto holders to sell their holdings as early as possible.
The investment banking member, Mahesh Singhi feels that SEBI is feeling scared of the diversion of funds raised by the IPO officers into wrong investments if crypto continues in the country. Presently, with the pressure from SEBI, IPO officers have signed an affidavit stating that in a short period of 24 hours, they will liquidate all their digital assets, whenever the news of cryptocurrency banning is announced.
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