Cryptocurrency Is Illegal In India Says NASSCOM President

Oct 26, 2018 at 17:00 Update Date :Oct 26, 2018 at 17:00 UTC

The president of the nonprofit organization, NASSCOM, believes that cryptocurrencies are illegal in India. While other digital currencies like Ripple, Ethereum, Bitcoin are not banned but they can’t be used as a financial instrument for trade.

The president of the National Association of Software and Services Companies (NASSCOM), Debjani Ghosh stated that crypto is an illegal entity. The NASSCOM is an association with over 2000 member companies’ for the IT sector and business process industries.

NASSCOM safeguards the new tech startups in the country against any hurdles; both legally as well as regulatory. Now the association won’t help the cryptocurrencies with any hurdles, which means startups have to settle their problems directly with the government of the country.

Like earlier this year, the Reserve Bank of India prohibited banks to provide any services to the business which deals with cryptocurrency. This led companies to file petitions to the Supreme Court in order to get a better understanding of the rules and regulatory landscape.

Major cryptocurrencies like BTC are not considered to be a legal way of payment in India. However, they have not yet been  declared illegal either. Crypto is legal in India but the ban by RBI was mainly because of concern for financial stability and the investors’ security.

Since the day of the ban, there are major issues faced by the exchanges, which includes platform like Zebpay performing slower operations and relocating to safer place Malta.

The statement of the NASSCOM president came after police seized a project of the crypto exchange Unocoin. The police arrested the co-founders because they established a BTC ATM inside a mall in Bangalore. The report on Unocoin ATM has been already covered by Altcoinera.

NASSCOM has shown its interest in investing in the blockchain technology and already collaborated with Canada based Blockchain Research Institute which focuses more on promoting the digital economy.

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