Banning cryptocurrencies will encourage non-state players: BACC

The BACC said that the Council has advocated the use of cryptocurrencies only as an asset

A blanket ban on cryptocurrencies will encourage non-state players thereby leading to more unlawful usage of such currencies, according to Blockchain and Crypto Assets Council (BACC), which is part of the Internet and Mobile Association of India (IAMAI).

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is listed for introduction in the upcoming winter session in the Parliament.

It may be mentioned, a few days ago, Prime Minister Narendra Modi had 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."

Read | 54% people don't want cryptocurrencies legalised in India: Survey

In a press statement, BACC-IAMAI fully concurred with this view and in its submission before the Supreme Court earlier 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 statement said.

It said, 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 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,” the statement pointed out.

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