A major Indain trade organization, Nasscom calls the recently proposed blanket ban on cryptocurrencies by a governmental panel in the country an unjust, as per a report by local financial periodical The Economic Times on July 30.
Nasscom reportedly claims that prior to their launch crypto projects can always be tested in regulatory sandboxes. As per Nasscom, an action such as banning will only push away legitimate businesses who are already pro-compliance. While, Nasscom does add, that much work needs to be done in terms of creating a regulatory framework so as to mitigate illegal activities in the crypto space:
“We should work towards creating a regulatory framework that will constantly monitor and prevent illegal activities. Regulating would allow the law enforcement agencies to be better equipped to understand these new technologies, enable them to gather intelligence on criminal developments and take enforcement actions,” said the IT industry’s apex body.
Conversely, a ban is more likely to deter only the legitimate operators as they have no intent to be non-compliant.
Though officialy, there is no ban on cryptocurrencies in India currently, the ban on financial institutions in the country from offering services to crypto-related businesses by the Reserve Bank of India (RBI) has lead a number of crypto exchanges to closed down.
As per the RBI circular, local banks were prohibited from offering services to crypto-related firms was released by the RBI in April 2018 and subsequently upheld by the country’s Supreme Court that May. This May, the crypto exchange Coinome halted its services in India due to regulatory pressure. The exchange allegedly wrote in an email to customers: