The Swadeshi Jagran Manch (SJM) has urged the Government to impose an ‘outright ban’ on dealing in cryptocurrencies for Indian residents while granting a short time window for those already holding them to sell or exchange them with disclosures to the Income-Tax authorities.
The Government should also ban online trading platforms for buying, selling or otherwise dealing in cryptocurrencies or crypto assets in circulation at present, it said in a resolution passed at its national conclave that concluded on Sunday.
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While the SJM called for financial penalties on those who flouted the ban on cryptocurrency trading, it also mooted an aggressive awareness campaign to inform investors not to ‘fall prey to deceptive advertisements’ from cryptocurrency exchanges.
“Although there is no official information about this, it is estimated that about 20 million people have put their money in cryptocurrencies. People [mostly youth] of small and big cities and even villages are getting attracted towards it, because they feel that they can get quick profit by putting their money in it,” the SJM noted.
The Centre is working on a law to regulate cryptocurrency and grant legitimacy to a digital currency to be issued by the Reserve Bank of India and the SJM sought that this legislation be expedited.
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On the Government’s indications that some relaxations may be granted in the cryptocurrency law to encourage the underlying technologies, the SJM demanded that the use of blockchain technology not be linked to cryptocurrencies alone and its deployment must be backed in all spheres of economic or social activities.
Arguing for an outright ban on cryptocurrencies, the SJM said that recognising them would result in money laundering, terror financing and lead to capital account convertibility ‘from the back door’. “Recognition of cryptocurrency may lead to heavy speculation which may in term adversely impact financial market,” it added.