The ban on cryptocurrencies in India is going through a roller coaster ride with high’s and low’s. In the recent news, the government bodies are having a clash of interests because the inter-ministerial committees have suggested a ban on the cryptocurrencies whereas, on the other hand, Indian Information technology industry is opposing this decision.
The National Association of Software and Services Companies (Nasscom) on Tuesday made a statement and suggested that the government should work on developing a risk-based framework to monitor cryptocurrencies. They further added that a ban would discourage tech startups, and this will lead to no new development in the technology sector of the country.
This statement came from Nasscom after a government panel which was given the task to examine the virtual currencies recommended to ban the private cryptocurrencies in India. They also wished to impose 10-years imprisonment for anyone found dealing with them.
Nasscom added that the cryptocurrency-based businesses could be tested before they are made available for the public use. The governments should work towards developing a framework that will continuously monitor the usage and prevent illegal activities.
The committee, however, recommended that the distributed ledger technology(DLT) can be of great help for the financial sector of India as well as help in trade financing, lowering the cost of know your customer(KYC) processes, etc. Nasscom welcomed the suggestion and would like to engage with the government to work with DLT.
