The Internet and Mobile Association of India IAMAI said on Thursday that a blanket ban on the digital currencies in India will encourage non-state players and will lead to more unlawful use of the assets as part of the panic and confusion over the likely ban on cryptocurrencies in India.
The IAMAI said in a statement released to the media that it fully agrees with the view of Prime Minister Narendra Modi, who stated that countries should work together to make sure that virtual currency doesn't end up in the wrong hands.
In his speech, PM Modi said it was important that all democratic nations work together on this coin to make sure it does not end up in the wrong hands, which can spoil our youth. The IAMAI said in its submission to the Supreme Court that it had listed several negative outcomes of a ban on cryptocurrencies such as zero accountability and a complete evasion of taxes. Retail investors will be adversely affected by a ban, according to IAMAI.
The Council has argued in favor of banning private cryptocurrencies as a currency in India by law, because it believes that it is likely to interfere with monetary policy and fiscal controls.
The Council has advocated for their use only as an asset. The Council believes that a smartly regulated business of crypto assets will protect investors, help Indian buyers and sellers, and limit illegal use of cryptocurrencies, the statement read further.
Is a blanket ban on cryptocurrencies in India?
IAMAI stated that exchanges in India are committed to providing an effective instrument of monitoring and are dedicated to creating an ecosystem that guarantees investor protection besides bringing the investors and exchanges under proper tax laws.
The Council believes that exchange efforts should be supported by a law that should enable them to provide safer services to investors and fair taxes to the government.
The BACC is mandated to create a transparent and regulated business for cryptocurrencies in India and represents exchanges based in India.