The Blockchain and Crypto Assets Council (BACC), which is part of the Internet and Mobile Association of India (IAMAI) on Thursday said a blanket ban on cryptocurrencies will encourage non-state players, thereby leading to more unlawful usage of such currencies.
BACC’s statement comes days after the government listed for introduction in Parliament a bill to ban all private cryptocurrencies, with some exceptions.
In a statement, IAMAI said there would be several negative outcomes of a ban such as zero accountability and traceability of the origin and end usage of the cryptocurrencies; besides a complete evasion of taxes.
A ban will also adversely impact retail investors, it added.
The Council has always argued in favour of prohibiting the usage of private cryptocurrencies as a currency in India by law since usage as currency is likely to interfere with monetary policy and fiscal controls, the statement said.
On the other hand, the Council has advocated their use only as an asset.
The Council said it believes that a smartly regulated crypto assets business will protect investors, help monitor Indian buyers and sellers, lead to better taxation of the industry, and limit illegal usage of cryptos.