Nasscom suggests an alternative to banning crypto in India

• Nasscom says that the government should work on a risk-based framework to regulate and monitor cryptocurrencies.
• Many in the Indian crypto community feel that the government ban will not stop crypto trade, given its digital nature.

Earlier, a government panel in India had proposed a complete ban on transaction of cryptocurrencies in the country. Nasscom (National Association of Software and Services Company) has spoken against the proposed ban, saying it is “not a solution.” It stated:

“Nasscom believes that the recent proposal of the Inter-ministerial Committee of the government to ban all cryptocurrencies barring those that are backed by the government is not the most constructive measure. Instead, the government should work towards developing a risk-based framework to regulate and monitor cryptocurrencies and tokens.”

The ban, though not official yet, will be making it illegal for people to deal with cryptocurrencies in India that aren’t regulated by the government. This includes currencies like Bitcoin, Ethereum, Ripple and more. In addition to Nasscom, other stakeholders in the industry are also of the opinion that the ban will not be able to stop the crypto usage. CEO of Unicoin said that the online nature of crypto transactions makes it “impossible to tell where it’s happening from.”

Vishwanath also said that the ban is a wrong move for the government, as it might drive crypto transactions underground. He said, “As long as there’s a way to bring this money into regulated means, there’s a way to trace it and stop illegal activities.”  

According to EY India, the “move does not affect the industry at large, which is leveraging the blockchain technology for positives.” Prashant Garg from EY India added “Crypto is just one manifestation of the technology. The regulation takes India away from speculative use of technology and paves the way for beneficial use of technology and thereby propagates auditable, secure digital business ecosystem.”