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2,700 Indian Companies Stood Against Proposed Crypto Ban

Tim Alper
Last updated: | 1 min read

An association of Indian technology companies wants the government to rethink a potential ban on cryptocurrencies – and choose a path of regulation instead of a China-style blanket ban.

Source: iStock/xavierarnau

The National Association of Software and Services Companies (NASSCOM) said that a proposed ban on cryptocurrency-related businesses and transactions put forward by an inter-ministerial committee was “not the most constructive measure.”

The body stated,

“Instead, the government should work towards developing a risk-based framework to regulate and monitor cryptocurrencies and tokens.”

Doing so, the body said, would be advantageous for business growth. The association added that “Regulating would allow law enforcement agencies to be better equipped to understand these new technologies, enable them to gather intelligence on criminal developments and take enforcement action.”

NASSCOM claims to have some 2,700 member companies and calls itself the “apex body” for the USD 182 billion India’s IT business process management industry.

Per The Economic Times, NASSCOM says the Indian government will soon have all the resources it needs to conduct checks on cryptocurrency projects. The body said these checks could be conducted safely in special regulatory sandboxes that are now being constructed in many parts of India under the supervision of financial regulators.

The government has considered stern measures as part of any potential crackdown, with ministers even considering a proposal to punish cryptocurrency holders with jail sentences of up to 10 years.

Last year, the country’s central bank, the Reserve Bank of India (RBI), said it would refuse services to businesses and individuals dealing with cryptocurrencies. However, in the same release, the RBI also praised blockchain technology’s “potential to improve the efficiency and inclusiveness of the financial system,” and said it would look into the idea of issuing a “digital currency.”