|

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

Ripple nears lifeline support as macro risks intensify

Ripple continues to face significant selling pressure, sliding below $1.10 at the time of writing on Wednesday. This decline mirrors the broader weakness in the crypto market, exacerbated by mounting macroeconomic headwinds and persistent geopolitical uncertainties.

Crypto Today: Bitcoin, Ethereum, XRP trade under pressure as September Fed rate-hike odds increase

Bitcoin is trading between $62,000 and $63,000 at the time of writing on Wednesday, weighed down by headwinds stemming from macroeconomic uncertainty and geopolitical tensions in the Middle East, especially as the US and Iran continue to offer conflicting accounts of the nuclear discussions.

Cardano vulnerable to deeper losses amid SecondFi exploit

Cardano price hovers below $0.1500 at press time on Wednesday, extending a refreshed bearish impulse move of over 20% in the last nine days. The exploitation of the Cardano ecosystem’s SecondFi wallet-generation software, resulting in a loss of about 16 million ADA, weighs on retail strength.

Bitcoin struggles as institutional demand remains weak

Bitcoin remains under pressure, trading around $62,700 on Wednesday after losing 2% the previous day. Persistent institutional selling, with spot Exchange Traded Funds (ETFs) recording outflows on Tuesday, continues to weigh on BTC.

Bitcoin: Recovery hopes fade after the Fed spoils the party
Bitcoin (BTC) is set to end the week in the red, trading near the 200-Week Simple Moving Average (SMA) at around $62,300 on Friday. Institutional selling persists, capping BTC’s recovery as spot Exchange Traded Funds (ETFs) point to a sixth consecutive week of outflows.