Search ForexCrunch
  • Earlier, India’s finance ministry had proposed legislation that bans the use of digital assets in the country. 
  • According to Adv PM Mishra from Finlaw Consultancy, the ban will cause India to lose the global dollar battle. 
  • He said that India has to come up with policies to mitigate risks and frame required cryptocurrency regulations.

In a recent interview with Digpu News Network, Adv PM Mishra discussed the stance that various countries have regarding cryptocurrency regulations. He spoke about the repercussions that cryptocurrency bans have on countries in the long run. Mishra said that he was invested in knowing how several governments have encouraged regulated cryptocurrencies, adding that he has understood what hindered the same process in India.

The Finance Ministry has proposed legislation that bans the use of cryptocurrency in India and makes violations punishable with a fine or with one to ten years of imprisonment. Called the “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019,” the bill states that “cryptocurrency shall not be used as legal tender or currency at any place in India.” It also makes promotion, advertising, and abetment in the participation of use of cryptocurrency punishable with a fine, or prison term of up to 7 years. 

Mishra noted that the ministry’s reasoning for banning digital assets is that they are unreliable, harmful to customers and can cause interference in the monetary policy and regulation of monetary policy. Additionally, the committee disregards it for not being money at all. 

According to Mishra, no country has treated cryptocurrencies as legal tender and neither should India. Concerning safety, he said that India has to frame necessary policies to mitigate risks, adding that “it is a technology which can be regulated for sure.” 

In conclusion, Mishra said that it’s difficult to believe that India will ban digital assets. According to him, if the government decides to ban cryptocurrencies, it “will lose the dollar battle globally.” While countries like China, Japan and Australia lead the show, India will remain a service provider, Mishra noted.