The Blockchain and Crypto Assets Council (BACC), a part of the non-profit Internet and Mobile Association of India (IAMAI) said that a blanket ban on cryptocurrencies in the country will encourage non-state players, thereby leading to more unlawful usage of such currencies.
The statement from BACC, representing major crypto exchanges based in the country, came after the government sought to ban all private cryptocurrencies in the upcoming Crypto Bill 2021.
Prime Minister Narendra Modi had earlier said, “It is important that all democratic nations work together on this (cryptocurrency) and ensure it does not end up in the wrong hands, which can spoil our youth.”
Indian media reports quoting a statement released to media, IAMAI said it fully concurs with the PM’s view and in its submission before the Supreme Court earlier it had listed several negative outcomes of a ban such as zero accountability and traceability of the origin and end usage of the cryptocurrencies; besides a complete evasion of taxes. A ban will also adversely impact retail investors.
The Council has always argued in favor of prohibiting the usage of private cryptocurrencies as a currency in India by law since usage as currency is likely to interfere with monetary policy and fiscal controls, the statement said. On the other hand, the Council has advocated their use only as an asset. The Council believes that a smartly regulated crypto assets business will protect investors, help monitor Indian buyers and sellers, lead to better taxation of the industry, and limit illegal usage of cryptos, it added.
Crypto exchanges based in India offer an effective instrument of monitoring and are dedicated to creating an ecosystem that guarantees investor protection besides bringing both the investors and exchanges under proper tax laws. The Council said it believes that the efforts of the exchanges should be supported by a law that should enable them to provide safer services to investors and fair taxes to the government.
(With inputs from agencies)
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