A nationalist organization in India has passed a resolution calling on the government to ban digital currencies in the Asian country. Swadeshi Jagran Manch (SJM) believes that digital currencies pose a danger to financial markets and are a hotbed of illicit activity, including money laundering. However, any legislation will take a few months longer than expected, with insiders revealing Parliament is delaying digital currency regulations to focus on more pressing issues.
The SJM is an economic and cultural organization founded in 1991. It is affiliated with the Rashtriya Swayamsevak Sangh, an Indian right-wing nationalist paramilitary organization with massive influence over the Indian government. With a focus on the Indian economy, the SJM takes a nationalist stance on most issues as he seeks to protect local businesses. He lobbied against Chinese tech companies like TikTok and Huawei, called for localization of data, lobbied for tougher rules for e-commerce giants, and more.
Digital currencies have joined a long list of activities that the SJM is opposed to. The organization recently passed a resolution calling on Narendra Modi’s government to ban the buying, selling, investing or storing of digital currencies in India.
In a resolution it adopted at a recent meeting, the organization declared, “The government should rightly ban the buying, selling, investing, and other activity in cryptocurrencies by anyone residing in India.”
Those who violate this law face financial penalties or jail time, or both, the LSU proposed.
Additionally, according to the SJM, digital currencies experience a lot of speculation and price volatility. If allowed to enter the financial market, the effect could be massive, he said. If they were to be legalized, they would also promote illegal activities such as money laundering and terrorist financing, he added.
“The law relating to the issuance of digital currency by the Reserve Bank of India should be framed quickly. The CBDC should be considered to be legal tender. Cryptocurrencies such as Bitcoin, Ethereum, etc. should not be recognized as an asset or a digital asset, because they will indirectly become a medium of exchange like a currency ”, summarizes the resolution.
Digital currency bill will be further delayed
As the LSU calls on Parliament to act quickly and regulate digital currencies, sources have revealed that a bill to do just that will be delayed further in the New Year. Indian lawmakers will resume their activities in January, but the focus will be on other, more pressing issues.
Known as the ‘Cryptocurrency and Official Digital Currency Regulation Bill, 2021’, it has been included in the Roaster for legislation to be debated in the Lok Sabha (the lower house of parliament) This year. As CoinGeek reported, the Lok Sabha was supposed to discuss the bill during the winter session, which ended just before Christmas, but it is not. Now, according to sources in India, the bill could be further delayed.
The next parliamentary session should start at the end of January. Known as the budget session, its main purpose is the country’s budget and all resources and time are spent on it. The finance ministry, which is said to have played a key role in shaping digital currency regulations, is also fully focused on the budget.
“During the budget session, the finance ministry gives each senior official sector responsibility, and as a result, no one is performing their normal duties,” said Vivan Sharan, a political expert in India who has worked with the government in the past. .
Subhash Garg, a former finance ministry official, believes budget debates will last until the end of April and possibly beyond.
“One cannot speculate that the bill will come during the monsoon session in July. There are much deeper issues. I do not know if the government is broadening the scope of the bill. I could take even longer and maybe I should take longer ”, he said. Recount a take.
The delay could be a boon for the digital currency industry. In its current form, the bill is very restrictive for the industry and even has sections that call for a ban on “private cryptocurrencies”. However, now that it’s delayed, the industry might take this time to engage more with regulators and hopefully get more enabling regulations.
The Indian government has indicated that it is ready to take a more industry friendly approach. Prime Minister Modi called on India to lead global efforts to shape “emerging technologies, like social media and cryptocurrencies, so that they are used to strengthen democracy, not undermine it.”
As CoinGeek reported, it called for a phased, forward-looking approach to the regulation of digital currencies.
Cryptocurrency scams still abound in India
As Indians wait for regulation, a police commissioner called on citizens to beware of digital currency scams. Shikha Goel, the additional police commissioner in Hyderabad, India, has warned citizens of the rise in cybercrime, facilitated by digital currencies.
Goel revealed that most scams revolve around “get-rich-quick” programs that lure investors in with bogus promises. As soon as they are addicted, the crooks fly away with their money.
“They’ll send a link to a website or app to victims and tell them how to buy cryptocurrency. After a successful purchase, scammers ask them to transfer it to their private wallet for much higher returns, ”Goel said.
So far, Hyderabad Police have seen 16 filed cases related to digital currency scams. Of these, 14 were related to investment and trade.
“People have been tricked by ₹ 3.45 crore ($ 460,000) in their greed for higher returns compared to investing in cryptocurrency,” the commissioner said. revealed.
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