Due to the illicit activities going on within crypto firms in India, an Indian minister is taking bold steps to conduct investigations to expose these firms.
According to a filing received by Lok Sabha, Mohammed Faizal of the government’s lower house provided three different questions to Anurag Thakur, Finance and Corporate Affairs State Minister in India regarding crypto firms. He asked these questions on Tuesday.
Are crypto firms violating laws laid down by CAC?
Mohammad Faizal’s first question has to do with the speed at which there is an increase in the fraudulent doings by Bitcoin and other crypto firms in India. He requested to know whether the ministry is aware or not.
Secondly, he demanded to know whether these crypto firms are violating the laws laid down by CAC (Corporate Affairs Commissions) just by not submitting their annual balance sheets to the government.
Lastly, Mohammed Faizal demanded to know whether the Indian government is filing any legal action against these bitcoin and crypto companies violating the law or not.
Just two Bitcoin and crypto trading firms registered
While replying to these questions, State Minister Thakur said that there is nothing under the Firms Act where “Bitcoin firms” are listed. He continued by revealing that there are just two Bitcoin and crypto trading firms in the country that were registered by the Corporate Affairs of the Ministry. The first firm is the Zeb IT Services and the second one is the Unocoin Technologies.
Indian minister stated that Zeb IT Services had received several prosecutions over the years because they were used to the violations of laws under the “Firms Act.” He said that this crypto firm is presently under liquidation. However, he said he had not received any criticisms regarding Unocoin. This is because their filings are up to date.
Aftermath of the reversal of the RBI ban
The Reserve Bank of India (RBI) ban on cryptocurrencies was reversed by the Supreme Court, there was an increase in the number of crypto firms in the Indian market. Also, many crypto firms have shown their interest in escalating their services in India. It looks like the SC ruling lacked the necesary details for regulating crypto firms.
Unocoin had resumed fiat deposit services within 24 hours of the court’s ruling, alongside OKEx partner Coindcx and the Binance-owned Wazirx. RBI is appealing for the examination of the verdict at the Supreme Court verdict. Abhishek Rastogi, a partner at Khaitan & Co. comments:
SC may look at the RBI’s review petition but as of now the cryptocurrency platforms can operate in India. Many companies have even gone bankrupt after the RBI’s diktat and they may also look to initiate action in this regard.
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