On Thursday, the Blockchain and Crypto Assets Council (BACC), part of the Internet and Mobile Association of India (IAMAI), said a blanket ban on cryptocurrencies would promote non-state players, heading to more illegal activity practices of such currenciess. BACC’s statement arrives days after the government registered for proposal in Parliament a law to forbid all private cryptocurrencies, with some exclusions.
In a statement, IAMAI said there would be numerous adverse consequences of a prohibition, such as zero responsibility and traceability of the source and end usage of the cryptocurrencies, besides a complete deception of taxes. A ban will also unfavourably affect retail investors, it continued.
The statement said that the Council has consistently disputed banning private cryptocurrencies as a currency in India by the authority since practice as currency is expected to intervene with monetary policy and fiscal controls.
On the other hand, the Council has supported their practice only as an asset.
The Council said it considers that a smartly managed crypto assets business will shield investors, help control Indian buyers and sellers, lead to better taxation of the industry, and curb the unauthorised practice of cryptos.
The statement said that crypto exchanges based in India contribute an efficient monitoring instrument and are committed to producing an ecosystem that ensures investor protection besides bringing investors and exchanges under fair tax laws. The Council concluded that the exchanges’ efforts should be backed by a bill that should permit them to give safer services to investors and fair taxes to the government.
‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’, to be presented in the winter session of Parliament beginning November 29, attempts to “create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India.
The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses”. The Blockchain and Crypto Assets Council (BACC) serves crypto exchanges in India and involves companies like CoinDCX, WazirX, and Coinswitch Kuber.