Banning Cryptocurrencies Can Leads to More Unlawful Usage: BACC

The Blockchain and Crypto Assets Council (BACC), of IAMAI, in a statement released to the media, said that a blanket ban on cryptocurrencies will encourage non-state players thereby leading to more unlawful usage of such currencies.

In his recent speech, the Honourable Prime Minister of India had said, "It is important that all democratic nations work together on this (cryptocurrency) and ensure it does not end up in the wrong hands, which can spoil our youth."

IAMAI fully concurs with this view and in its submission before the Supreme Court earlier listed 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.

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. On the other hand, the Council has advocated their use only as an asset. The Council 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.

Crypto exchanges based in India offer an effective instrument of monitoring and are dedicated to creating an ecosystem that guarantees investor protection besides bringing both the investors and exchanges under proper tax laws. The Council believes that the efforts of the exchanges should be supported by a law that should enable them to provide safer services to investors and fair taxes to the government.

About BACC

The Blockchain and Crypto Assets Council (BACC) representing crypto exchanges based in India, is mandated to create a transparently regulated crypto asset business in India.

About IAMAI

The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, digital entertainment, ecommerce and mobile & digital payments among others. Sixteen years after its establishment, the association is still the only professional industry body representing the online industry in India. The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 350 Indian and overseas companies, and with offices in Delhi and Mumbai the association is well placed to work towards charting a growth path for the digital industry in India.

Ashish Singhal of CoinSwitch and Sumit Gupta of CoinDCX Appointed Co-Chairs of IAMAI’s Crypto Council

(L-R) Ashish Singhal of CoinSwitch & Sumit Gupta of CoinDCX 

The Blockchain and Crypto Assets Council (BACC), a part of IAMAI whose members are crypto exchanges operating in India and are signatories of a self-regulatory code of conduct that ensures they comply with basic KYC and other regulatory guidelines, has announced the appointment of Ashish Singhal, Founder and CEO, CoinSwitch and Sumit Gupta, Co-Founder and CEO, CoinDCX, as its Co-Chairs.

Singhal and Gupta will be primarily responsible for driving the adoption and growth of the crypto industry in India and ensuring to create a consumer safe environment. India has seen exponential rise in the adoption of cryptocurrency with more than 1.5 crore Indians currently holding crypto assets.

“As cryptocurrencies are getting further mainstreamed in India, the industry is working closely with regulators and policymakers to build a prosperous and secure crypto environment to put India on the global crypto map. We believe that a progressive regulatory framework will foster innovation in financial offerings and bring financial well-being to every Indian,” said Ashish Singhal, Founder and CEO, CoinSwitch Kuber.

Echoing similar views, Sumit Gupta, Co-Founder and CEO, CoinDCX, said: “India today ranks second, in percentage of cryptocurrency ownership across the world. The interest and confidence in the new age asset class will increase as more and more people understand its potential."

“The onus is now on the government and the players to create an inclusive ecosystem. The first step in this direction is to build trust around the product by removing misconceptions and providing user-focused education. Second, increase the availability of cryptocurrency transactions through a transparent, safe, and secure platform. And most importantly, the government should take up the steps and form crypto regulations in India to protect the best interests of crypto investors,” he added.

About BACC

The Blockchain and Crypto Assets Council (BACC) was formed with the vision of doing public advocacy for the crypto industry, to increase awareness about crypto and provide industry guidance. All major crypto exchanges are members of this industry body.

About IAMAI

The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, digital entertainment, ecommerce and mobile & digital payments among others. Sixteen years after its establishment, the association is still the only professional industry body representing the online industry in India. 

The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 300 Indian and overseas companies, and with offices in Delhi and Mumbai the association is well placed to work towards charting a growth path for the digital industry in India.