Banning cryptocurrencies not the solution: NASSCOM

Our Bureau New Delhi | Updated on July 30, 2019 Published on July 30, 2019

The National Association of Software and Services Companies (NASSCOM) on Tuesday said that the government’s recent proposal to ban cryptocurrencies was not the solution.

“NASSCOM believes that the recent proposal of the Inter-ministerial Committee of the government to ban all cryptocurrencies barring those that are backed by the government, is not the most constructive measure,” a statement from NASSCOM said.

The government should develop a risk-based framework to regulate and monitor cryptocurrencies and tokens, the body said, adding that a ban would discourage tech startups.

“To address consumer protection concerns, cryptocurrency-based businesses can be tested in the regulatory sandboxes being launched by the financial sector regulators across the country. We should work towards creating a regulatory framework that will constantly monitor and prevent illegal activities,” the statement further said.

NASSCOM also conveyed that it would seek more discussions on the issue and would continue to work with government stakeholders.

Published on July 30, 2019
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