Banning cryptocurrencies will encourage illegal activity, says industry body BACC


Cryptocurrency Ban Will Encourage Illegal Activity, Says Industry Body BACC | Photo credit: iStock Images

A blanket ban on cryptocurrencies will lead to more illegal use of digital assets, the industry body Blockchain and Crypto Assets Council (BACC) said on Thursday.

“A blanket ban on cryptocurrencies will encourage non-state actors, leading to more illegal use of these currencies,” the Internet and Mobile Association of India (IMMAI) affiliate said in a statement on Thursday.

IAMAI said he fully shares Prime Minister Narendra Modi’s recent statement that it is important that all democratic nations work together on this (cryptocurrency) and ensure that it does not fall into the wrong hands, which can spoil our youth.

He added that in its submission to the Supreme Court, IAMAI listed several negative outcomes of a ban, such as zero liability and traceability of the origin and end use of cryptocurrencies; besides total tax evasion. A ban will also have a negative impact on retail investors.

The BACC further stated that it has always advocated for a legal ban on the use of private cryptocurrencies as currency in India, as the use as currency is likely to interfere with monetary policy. and tax audits.

On the other hand, the Council recommended their use only as an asset. A smartly regulated crypto asset firm will protect investors, help monitor Indian buyers and sellers, lead to better industry taxation, and limit the illegal use of cryptos, he added.

India-based crypto exchanges offer an effective monitoring instrument and are dedicated to creating an ecosystem that ensures investor protection in addition to subjecting both investors and exchanges to the appropriate tax laws.

The Council believes that the efforts of stock exchanges should be supported by legislation that should allow them to provide more secure services to investors and fair taxes to the government.

The BACC statement follows the government’s list of the Cryptocurrency and Official Digital Currency Regulation Bill, 2021, for introduction in the next winter session of Parliament. The description from the Bill by Lok Sabha newsletter released Tuesday evening says the legislation “seeks to ban all private cryptocurrencies in India” but allows “certain exceptions to promote the underlying technology and its uses.”

This has led to much speculation that all private cryptocurrencies will be banned in India once the legislation is approved.


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