India: NASSCOM President Claims All Cryptocurrencies ‘Illegal’

Will India completely stomp out cryptocurrency within the country, or is the government serious about making a plan for regulations in the future?

Taking A Hard Line

The government of India has not been quiet about its stance and negative feelings towards cryptocurrency. According to The Hindu Business Line, Debjani Ghosh, the president of The National Association of Software and Services Companies (NASSCOM) in India, proclaimed that cryptocurrencies within the borders of the country are illegal. NASSCOM later tweeted a statement on the issue.

NASSCOM statement – 'Regarding crypto-currencies' pic.twitter.com/YSb2RJLQJp

— NASSCOM (@nasscom) October 26, 2018

While no official regulation has outright banned owning cryptocurrency, the Reserve Bank Of India (RBI) released a circular in April. India has no qualms about enforcing its strict rules either. This past week, Quartz reported that police in Bengaluru seized India’s first cryptocurrency ATM — placed in a mall by cryptocurrency exchange Unocoin — also arresting the exchange’s co-founder, Harish BV. This has, in turn, forced cryptocurrency exchanges in India to close up shop. Zebpay, formerly one on India’s largest exchanges by volume, recently halted business in India and announced it would be moving to Malta to continue its business in a place with progressive laws and regulations on digital assets.

A Future Hanging In The Balance

Ghosh believes that the biggest problems between the government and cryptocurrency businesses are created from ‘”policy-making not keeping pace with rapid technological changes.” This is also true with other governments around the world. The technology that goes into creating blockchain systems and cryptocurrencies is fresh and being reinvented by the day — creating a temporary gray area in which adopters and governments need to establish regulations which clearly differentiate the ‘right’ from the ‘wrong.’ The Economic Times reported that the Supreme Court of India is now getting involved, and has requested a report in two weeks from India’s National Informatics Centre (NIC) on its view of cryptocurrencies and a proposed plan moving forward. What are your thoughts on India and its stance on cryptocurrency? Will India take a hard line against cryptocurrency indefinitely? Let us know in the comments below!