The Internet and Mobile Association of India (IAMAI) on Wednesday appealed to the government not to ban cryptocurrency, and instead proposed that robust mechanisms should be developed to regulate the ecosystem.

“Cryptocurrency has been generating jobs across a variety of functions — legal, compliance, tech, marketing, business development, finance — in India and abroad. Given the scale and diversity, the good governance and regulation of the cryptocurrency ecosystem in India is critical and will give impetus to the government of India’s Digital India vision,” IAMAI said in a statement.

Digital assets

It also pointed out that the country is witnessing a considerable rise in digital assets.

“The crypto community consists of over one crore crypto holders holding over $1 billion worth crypto assets, over 300 start-ups generating tens of thousands of jobs and hundreds of millions of dollars in revenue and taxes. There’s a daily trading volume of $350-500 million,” IAMAI added.

The comments come in the wake of the government listing the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for introduction, consideration and passing in the current session of Parliament.

Nishith Desai, Founder, Nishith Desai Associates, noted that countries such as the US, Japan and other developed countries have a positive outlook towards crypto and are considering setting up regulations for the currency.

Finance Minister Nirmala Sitharaman has said the government will take a “calibrated” approach to crypto trading and that “negotiations and discussions” are going on with the Reserve Bank of India on how to regulate cryptocurrency in India. IAMAI members welcomed the statement but have raised concerns against the proposed ban of cryptocurrency.

Naveen Surya, Chairman, Fintech Convergence Council, and Chairman Emeritus of Payments Council of India (PCI), said: “Through AML/CFT and KYC-related compliances, the government can ensure a safe and secure crypto market for investors.”