New Investigations into India’s Illegal Bitcoin Companies

New Investigations into India’s Illegal Bitcoin Companies

According to a filing submitted to the Lok Sabha, the lower house of the Indian Parliament, has revealed an investigation into the illegal activities of so-called “Bitcoin firms” working in the country.

Parliamentarian Mohammed Faizal asked the Minister of Corporate Affairs three questions concerning cryptocurrency firms in India. First, he wondered if the government was aware of the allegations claiming “cheating and illegal activities by Bitcoin firms.”

He also asked if the crypto firms “are repeatedly not submitting their annual balance sheets in violation of the rules set by the Corporate Affairs Ministry,” and eventually called for clarification about any action taken against the accused entities.

Minister Thakur clarified that the crypto companies to which Faizal referred are not identified by the Companies Act. He added that Zeb IT Services and Unocoin Technologies are the only two firms registered with the Registrar of Companies.

He also indicated that lawsuits have been filed against Zeb IT for violating the Companies Act, noting that such company is “under liquidation.”

Thakur went up to say that Unocoin is always updating its filings, and no complaints were received against it.

Crypto exchanges resume operations after court ruling

Major Indian crypto companies Unocoin and WazirX have resumed operations less than a day after the country’s Supreme Court has canceled the restrictions imposed on local banks’ dealings with crypto firms.

Unocoin, which claims to have been the first crypto company in India, has been described by local observers as “an icon of the crypto industry.”

In April 2018, the Reserve Bank of India (RBI) had imposed a ban on local banks, preventing them from dealing with crypto firms. The ban came into effect in July of the same year.

Accordingly, the Internet & Mobile Association of India (IAMAI) filed a lawsuit against the RBI to the Supreme Court.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.