Crypto businesses in India not in the clear: New investigations launched into Bitcoin companies
|- Only two Bitcoin-related companies are defined under the Companies Act in India.
- Uncertainty still hovers over India’s crypto market despite the recent Supreme Court ruling.
According to a filing made at the Lok Sabha, the lower house of India’s parliament, new investigations have been launched to unearth any fraudulent and malpractice activities in what is deemed as “bitcoin companies.” The lower house was privy to several questions put forward by the parliamentarian, Mohammed Faizal.
The questions answered by Anurag Thakur the Minister of State for Finance and Corporate Affairs included:
- If the state is aware of the rising reports regarding “cheating and fraudulent practices by the bitcoin companies?”
- If the ministry new that companies “are repeatedly violating rules laid out by the Corporate Affairs Ministry by not filing annual balance sheets?”
- If the ministry has details in regard to any actions taken against the offending firms?
In response to the above questions, Thakur said that the ministry is aware that only two companies in the country have sort registration with the Registrar of Companies. He went ahead to say that the firms alleged by Faizal “are not defined under the Companies Act.” However, “prosecutions have been filed for violations under various provisions of the Companies Act” one of the two registered firms, Zen IT, which happens to be “under liquidation.” The second company, Unocoin has all its filings up to date and that no complaints are associated with it.
The rush for India’s crypto cake is back
Following the decision by the Supreme Court to lift the ban on all banking support towards cryptocurrency businesses, there has been a rush to set up or restart businesses in the country. In just 24 hours after the court’s ruling, Unocoin restarted the fiat deposit service. Other businesses that have refocused operations India include OKEx partner Coindcx and Binance-owned Wazirx. Kraken recently revealed that it will expand into the region while KuCoin has shown interest in the market as well.
While the Supreme Court ruling has brought life back to India’s crypto market, the future is still uncertain. The parliament is expected to rule on a draft bill that proposes a total ban on cryptocurrency. In addition, the Reserve Bank of India (RBI) is considering an appeal to the Supreme Court ruling.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.