The fight between the regulators and the cryptocurrency sector in India has now become a game of cat & mouse. Every now and then, a new announcement is made by the regulators in the country that causes a ripple in the entire cryptocurrency industry.
Recently, one of the most alarming and concerning reports around the cryptocurrency industry in India was that the Reserve Bank in India (RBI) had proposed the idea of banning cryptocurrencies entirely.
The proposal was presented at the Indian Parliament where it was decided that the bill will be considered during the Lok Sabha sessions. It was revealed that the final verdict around the bill would be announced somewhere around May of 2021.
However, one of the insiders from the Indian Parliament requesting to keep his identity anonymous made a shocking revelation. The person who claimed to be one of the finance ministers revealed that the decision was going to be in the RBI’s favor.
This would mean that cryptocurrencies will be completely banned from operating in the country. Furthermore, the cryptocurrency holders in the country would be given a 3 to 6 month period for the transition phase. During this phase, the crypto-holders in the country will be required to liquidate their cryptocurrencies before they become illegal.
This time, however, the regulators in the country have pulled another trick on the cryptocurrency sector. It is being speculated that the regulators will be putting a ban on the Initial Public Offering promoters. If the ban is imposed, it will be lifted off only if the promoters comply with one particular condition.
That condition is that these promoters will be required to sell the cryptocurrencies they have in their holdings. If they comply with the condition and carry out the sale, then they will able to participate in the process of raising funds.
According to one of the news reporting firms “Economic Times”, the regulator this time is the Securities Board of India. It has been revealed that the regulator may put a ban on the Initial Public Offering promoters if they have cryptocurrencies in their possession.
It has been revealed that the instructions of the possible ban from the SEBI are for merchant banks, stakeholders, and securities lawyers. These are all the entities that come under the jurisdiction of the regulator in the IPO ecosystem that deals with cryptocurrencies.
One of the securities lawyers who belong to the firm known as ET has commented on the recent possible ban reports. The lawyer stated that there are high chances that the Government of India is behind all of this matter.
With all the developments taking place in the crypto-sector in India, things are now very clear that the country will be banning the use of cryptocurrencies very soon.