Internet and Mobile Association of India says regulate, don’t ban digital currency

The Internet and Mobile Association of India has issued a plea to government not to ban digital currencies, but to regulate instead, as a means to unlock the “considerable benefits” of the digital currency sector.

The body, which represents ISPs, mobile networks and other digital businesses in India, said the government should instead introduce “robust mechanisms” for regulating the sector, in order to encourage job creation and economic growth.

In particular, the Internet and Mobile Association of India pointed to the scale and significance of cryptocurrency as an emerging sector in highlighting the need for a more pragmatic policy approach.

“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.”

The statement comes as the Indian government is taking steps towards introducing a bill that would ban the use of “private cryptocurrencies” in the country.

While the scope of the new proposed legislation is still unclear, India’s Minister of State for Finance, Anurag Thakur said the government would continue to study and monitor the national security risks posed by digital currencies before making its move.

The IAMAI has form in representing the digital currency sector in India, after successfully petitioning the courts to overturn a de facto ban on digital currency introduced by the Indian central bank.

India has traditionally taken a restrictive view of digital currency, despite research throughout government into blockchain and the benefits of the underlying technology in improving public administration.

With further restrictions on the cards, the remnants of the digital currency industry in India will be hoping the government listens to the proposals from the Internet and Mobile Association of India in delivering better regulation in place of an outright ban.

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