Indian government under pressure to make cryptocurrencies illegal

Buying, selling, investing, and any other dealings in cryptocurrencies should be forbidden in India, according to Swadeshi Jagran Manch (SJM), an affiliate of the nationalist organization Rashtriya Swayamsevak Sangh.

The SJM, which deals with economic issues, passed a resolution Sunday demanding that the Indian government introduce a total ban on transactions of crypto assets.

“The government should out rightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person resident in India,” the resolution, passed at the SJM national meeting, demanded.

The SJM also asked the Reserve Bank of India (RBI) to launch its digital currency as soon as possible to check the “unauthorized use” of private digital currency.

“The law relating to issuance of digital currency by the Reserve Bank of India should be framed quickly. The CBDC [Central Bank Digital Currency] should be considered as legal tender,” it said.

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“Cryptocurrencies such as Bitcoin, Ethereum, etc should not be recognised as asset or digital asset because it will indirectly become medium of exchange like currency.”

According to the resolution, cryptocurrencies have no underlying value, their issuers are not identifiable, they lead to heavy speculation that can damage the financial market, and their recognition may result in money laundering and financing terrorism.

At the same time, the organization has voiced full support for using blockchain in all spheres of economic or social activities, saying that the technology should not be linked to cryptocurrencies.

Virtual currencies have been on the RBI’s radar for some time, with the government considering an outright ban this year.

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