Nasscom – a high-profile, India-based trade organization, has reportedly shared that it disapproves the digital coins blanket ban – an initiative recently suggested by the governmental officials of the country.
Reported by the The Economic Times on July 30, Nasscom has shared its perspective as below:
“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.”
Per the report, Nasscom claimed that any crypto project can always go through testing phases, using regulatory sandboxes, before it is officially introduced. Nasscom also believed that the proposed ban will kill off India’s attraction, consequently missing out on crypto firms that are willing to comply with the local regulation.
However, Nasscom admitted that extensive efforts needed to be put in, in order to come up with proper regulatory framework, to minimize crypto-related criminal acts.
“We should work towards creating a regulatory framework that will constantly monitor and prevent illegal activities. Regulating would allow the law enforcement agencies to be better equipped to understand these new technologies, enable them to gather intelligence on criminal developments and take enforcement actions.”
The crypto exchanges in India are going through some rough waters, as the Reserve Bank of India (RBI) has disallowed financial institutions to work with crypto firms in the region. The act is current backed by the government, until proper legislative framework are introduced to regulate the Indian crypto space.