India's major trade organization Nasscom opposes cryptocurrency ban.

The major Indian trade organization Nasscom has expressed opposition to a blanket ban on cryptocurrencies, stating that the government should not prohibit but instead introduce regulatory mechanisms for the industry.

Nasscom, established in 1988, is the primary trade organization in India with over 2,700 member companies in the IT, business process outsourcing, and other technology-related industries.

According to a report by a local financial journal Economic Times, Nasscom commented:

We believe that the recent proposal by a government committee to ban all cryptocurrencies except those that are government-supported is not constructive. Instead, the government should work towards developing a risk-based framework for regulating and monitoring cryptocurrencies and tokens.

The report states that Nasscom also claims that crypto projects can always undergo testing within regulatory mechanisms before being released, rather than being "unregulatable" as suggested by the committee. However, Nasscom also believes that there is much work to be done in creating regulatory frameworks to mitigate illicit activities in the crypto space.

We should strive to establish a regulatory framework that continuously monitors and prevents illicit activities. Regulation will enable law enforcement agencies to better understand these new technologies, allowing them to gather intelligence on criminal developments and take enforcement actions.

India currently presents a hostile environment for the crypto industry. Although there is no "official ban" on cryptocurrencies in India, the Reserve Bank of India (RBI) prohibited financial institutions in the country from providing services to crypto-related businesses in April 2018, followed by a ruling by the country's Supreme Court in May, leading to the closure of some crypto exchanges.

The well-known crypto exchange Coinome has also ceased its services in India. The exchange reportedly wrote in emails to its customers:

India is currently going through an uncertain phase of crypto regulations. The government has not made a decision on the regulatory framework for crypto exchanges or wallets. Additionally, the Supreme Court has not taken action on the public interest litigation (PIL) regarding the regulation of crypto assets, hence the suspension of services in the country for now.

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