As uncertainty over the proposed crypto regulation bill over banning private cryptos continues, the Blockchain and Crypto Assets Council (BACC), of Internet and Mobile Association of India said in a statement on Thursday supported the use of cryptocurrencies only as an asset.

It added, however, that a blanket ban on cryptocurrencies will encourage non-state players thereby leading to more unlawful usage of such currencies. “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,” BACC said.

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Negative outcomes of a ban

BACC added it had 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.

“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,” it said.