India’s Swadeshi Jagran Manch Calls for Outright Ban on Cryptocurrency

According to reports, the Swadeshi Jagran Manch(SJM), an Indian economic, political and cultural organization affiliated to the nationalist Rashtriya Swayamsevak Sangh passed a resolution on cryptocurrency Sunday.

Ashwani Mahajan, co-convenor of SJM, told PTI publication that the resolution was approved by the Swadeshi Jagran Mangach’s 15th Rashtriya Sabha. The meeting concluded in Gwalior today.

The resolution reads:

Any Indian resident should be exempted from buying, selling, investing, or otherwise dealing with cryptocurrencies.

It also requires crypto investors to exchange or sell their cryptocurrencies in a short time period, subject to providing information to the Income tax department. The resolution also emphasizes that ‘disobeying the ban should render person/entity financially liable.

SJM claimed that India’s recognition of cryptocurrency could encourage speculation, which could negatively impact India’s financial markets. The organization further elaborated:

Recognizing the fraud could also lead to money laundering, terror financing, and capital account conversions via the backdoor.

The SJM also called upon the Union ministries for consumer affairs and corporate affairs, to launch an aggressive consumer awareness campaign following the ban on cryptocurrencies. It stressed the importance of advising people to avoid falling for ‘deceptive ads’ that are claimed to be being circulated on cryptocurrency exchanges.

Swadeshi Jagran Mench also addressed central bank digital currency (CBDC) which the Reserve Bank of India is currently working on.

“The law regarding the issuance of digital currency from the Reserve Bank of India must be quickly drafted. “The CBDC should be treated as legal tender,” the SJM’s resolution states.

It is not appropriate to recognize cryptocurrencies like bitcoin and ethereum as assets or digital assets, as they will inextricably become mediums of exchange similar to currency.

The resolution of Swadeshi Jagran Mangach echoes the central bank’s views on cryptocurrency. The central board of directors met recently and decided that cryptocurrency must be completely banned. A partial ban will not work. The central bank also expressed grave concerns about cryptocurrency, saying that it could negatively affect the country’s financial system.

The winter session of parliament was scheduled to include a cryptocurrency bill. The bill was not presented and the government is reworking it. According to reports, Indian Prime Minister Narendra Modi will make a final decision regarding the country’s crypto legislation. Recently, he stated that crypto should be used to empower democracy.