Cryptocurrency Transactions Should Be Completely Banned in India, Swadeshi Jagran Manch Demands

RSS-affiliate Swadeshi Jagran Manch on Sunday passed a resolution demanding that the central government completely ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person in the country.

The law relating to issuing of digital currency by the Reserve Bank of India should be framed "quickly" and the Central Bank Digital Currency (CBDC) considered as legal tender, the Swadeshi Jagran Manch (SJM) said in its fifteenth national meet.

"The resolution was passed by the 15th Rashtriya Sabha of the Swadeshi Jagran Manch, which concluded in Gwalior today," the outfit's co-convenor Ashwani Mahajan told PTI. The national meet had started on December 24.

"The government should out rightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person resident in India," the resolution demanded.

It also said that people holding cryptocurrencies can be allowed to sell or exchange the same within a short span of time, subject to provision of submitting information to the Income Tax department.

"Disobeying the ban should make person or entity liable to financial penalty," the resolution added.

The resolution passed at the SJM national meet argued that giving recognition to cryptocurrencies could lead to heavy speculation and adversely impact the financial market.

"Recognition may also result in money laundering and terror financing as well as capital account convertibility from the back door," it added.

The Union ministries of consumer affairs and corporate affairs should roll out an "aggressive" consumer awareness campaign, after banning cryptocurrencies, to advise people not to fall prey to "deceptive advertisements" being circulated by the "so called cryptocurrencies' exchanges", especially in Tier-2 and Tier-3 cities, the SJM said in its resolution.

"The law relating to issuance of digital currency by the Reserve Bank of India should be framed quickly. The CBDC should be considered as legal tender," it said, adding, "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."

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.