A total ban on cryptocurrencies encourages non-state actors and leads to the illegal use of such currencies. The Blockchain and Crypto Assets Council (BACC) is part of India’s Internet and Mobile Association (IAMAI).
The comment comes as the government is in a position to establish the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for deliberation and passing in the upcoming downtime session of the congress. The IAMAI, in its submission before the Supreme Court previously, listed several negative sequels of a ban. Similar to zero liability and track of the origin and end operation of cryptocurrencies, besides a concluded restraint of levies. A prohibition will also negatively affect retail investors.
Banning Crypto in India
The Commission has always advocated a legal ban on the use of private cryptocurrencies as currency in India. Because using it as a currency can affect monetary policy and fiscal controls. On the other hand, the Commission advocated using it only as money. The Commission believes that a carefully regulated cryptocurrency business will protect investors, help control buyers and sellers in India, lead to more efficient taxation of the industry and limit the illegal use of cryptocurrencies, BACC vocalized in a statement.
According to the Lok Sabha newsletter released on Tuesday, the cryptocurrency bill aims to ban all private cryptocurrencies in India. Still, it allows specific exceptions to promote the underlying technology and its use.
On Tuesday, Crypto holders in India went into panic mode. They were flooding exchanges at night after being surprised by a government announcement that could be interpreted as a ban on all cryptocurrencies. Charges of the highest-valued cryptocurrencies similar to Bitcoin and Ethereum fell approximately 15 %. Crypto exchanges took to calming investors, encouraging them not to rush into selling.
India-based cryptocurrency exchanges provide effective monitoring tools and are designed to create an ecosystem that ensures investor protection beyond ensuring that investors and exchanges comply with appropriate tax laws, the BACC stated.
Additionally, the Commission believes that the legislation should support exchange’s efforts that allow them to provide safer services to investors and fair taxes to governments.
Major crypto exchanges, including CoinDCX, WazirX, and Coinswitch Kuber, are part of BACC. Not long ago, Ashish Singhal, co-founder of Coinswitch Kuber, and Sumit Gupta, co-founder of CoinDCX, are co-chairs.
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