A proposal recently initiated by the Indian government panel for a ban on all cryptocurrencies has received attention from Nasscom, an Indian trade organization.
Rather than banning all crypto not backed by the government, Nasscom believes a better option would be for the government to create a framework to regulate cryptocurrencies and tokens. Having a ban would keep businesses away who are in compliance currently. However, Nasscom believes a lot of work needs to be completed to monitor for illegal activity with crypto.
Regulations would help government agencies better understand the technology and criminal activity so they can take action for enforcement.
Nasscome has more than 2,700 member companies and was founded in 1988 with a reach in technology-related enterprises and IT along with business process outsourcing.
Even though there is no ban currently in place on cryptocurrencies, several exchanges have closed. The Reserve Bank of India has prevented financial institutions from providing services to businesses that are in the crypto industry. This ban was put into place in 2018 and was upheld by the Supreme Court.