|

Nasscom suggests an alternative to banning crypto in India

  • Nasscom says that the government should work on a risk-based framework to regulate and monitor cryptocurrencies.
  • Many in the Indian crypto community feel that the government ban will not stop crypto trade, given its digital nature.

Earlier, a government panel in India had proposed a complete ban on transaction of cryptocurrencies in the country. Nasscom (National Association of Software and Services Company) has spoken against the proposed ban, saying it is "not a solution." It stated:

"Nasscom believes that the recent proposal of the Inter-ministerial Committee of the government to ban all cryptocurrencies barring those that are backed by the government is not the most constructive measure. Instead, the government should work towards developing a risk-based framework to regulate and monitor cryptocurrencies and tokens."

The ban, though not official yet, will be making it illegal for people to deal with cryptocurrencies in India that aren't regulated by the government. This includes currencies like Bitcoin, Ethereum, Ripple and more. In addition to Nasscom, other stakeholders in the industry are also of the opinion that the ban will not be able to stop the crypto usage. CEO of Unicoin said that the online nature of crypto transactions makes it "impossible to tell where it's happening from."

Vishwanath also said that the ban is a wrong move for the government, as it might drive crypto transactions underground. He said, "As long as there's a way to bring this money into regulated means, there's a way to trace it and stop illegal activities." 

According to EY India, the "move does not affect the industry at large, which is leveraging the blockchain technology for positives." Prashant Garg from EY India added "Crypto is just one manifestation of the technology. The regulation takes India away from speculative use of technology and paves the way for beneficial use of technology and thereby propagates auditable, secure digital business ecosystem." 


 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

More from Rajarshi Mitra
Share:

Editor's Picks

Dogecoin Price Forecast: Bullish divergence, whale accumulation support recovery hopes

Dogecoin shows early signs of a potential recovery, trading near $0.070 at the time of writing as bullish momentum divergence suggests selling pressure may be fading. In addition, whale accumulation and improving derivatives metrics suggest a bullish outlook, hinting at a potential recovery ahead.

Top Altcoins Price Forecast: Ripple hits 20-month low as Cardano and Solana lack momentum

Top altcoins, including Ripple, Cardano, and Solana, are maintaining a bearish tone as the broader market remains risk-averse. XRP is down to a 20-month low, risking a drop below the $1.00 psychological threshold, while ADA and SOL risk losing their recent gains amid a lack of upside momentum.

Ripple and Stellar outlook: Remain under pressure as bearish bias extends

Ripple and Stellar remain under pressure after falling slightly the previous day. XRP gravitates toward the key $1.00 psychological level while XLM slips below the critical support zone. Weakening derivatives metrics for both altcoins cap recovery outlook. Derivatives data shows a bearish bias among traders.

Crypto Market Overview: Bitcoin softens on institutional selling – CRV, ICP outperform
The broader cryptocurrency market shows mixed sentiment as Bitcoin (BTC) drops to $64,000 under institutional selling pressure. The Fear and Greed Index at 37, down from 40 the previous day, signals renewed bearish pressure. Meanwhile, Curve DAO (CRV) and Internet Computer (ICP) continue to extend their gains so far this week, emerging as top performers over the last 24 hours.
Bitcoin: Can bulls weather the market uncertainty?
Bitcoin (BTC) remains resilient, trading above $65,000 on Friday, with bulls defending key support despite cautious market sentiment. US-listed spot Bitcoin Exchange-Traded Funds (ETFs) showed strong inflows through Thursday, pointing to renewed institutional demand.