Swadeshi Jagran Manch (SJM), an affiliate of the Hindu nationalist organisation Rashtriya Swayamsevak Sangh, has reportedly passed a resolution demanding a ban on cryptocurrency in India. The resolution also states that violating the ban should result in a financial penalty.
Swadeshi Jagran Manch co-convener Ashwani Mahajan told PTI: “The resolution was passed by the Swadeshi Jagran Manch’s 15th Rashtriya Sabha, which ended today in Gwalior.” As per the resolution, buying, selling, investing and dealing in cryptocurrencies by any Indian resident should be outlawed. A short time frame is also mandated for crypto investors to sell or exchange their cryptocurrencies after submitting information to the Income Tax department.
Furthermore, the resolution emphasizes that disobeying the ban could result in financial penalties. According to the SJM, recognizing cryptocurrency in India could result in heavy speculation, which could negatively affect the country’s financial market. The organization elaborated: Money laundering and terrorist financing can also result from recognition(Crypto), as well as capital account conversion from the back door.
SJM further called on the Union ministries of consumer affairs and corporate affairs to launch an “aggressive” consumer awareness campaign with regard to banning cryptocurrencies. According to the organization, cryptocurrency exchanges circulate misleading advertisements that people need to avoid falling for.
Swadeshi Jagran Manch also touched upon central bank digital currency (CBDC), which the Reserve Bank of India (RBI) is developing. It said that the RBI should draft a law relating to the issuance of digital currency as soon as possible. The CBDC should be treated as legal tender.
The SJM’s resolution notes: In the future, cryptocurrencies like bitcoin, Ethereum, etc will indirectly become a medium of exchange like currency. They should not be regarded as assets or digital assets. A resolution by the Swadeshi Jagran Manch echoes what the central bank has recently said about cryptocurrencies.
While the RBI recently met with the board of directors and said a partial ban would not work. A central bank representative has also repeatedly expressed serious concerns about cryptocurrency, which could negatively impact the country’s financial system. A cryptocurrency bill was supposed to be considered in the winter session of parliament, but the bill has not been introduced and the government is reworking it, according to reports.
Earlier this month, Indian Prime Minister Narendra Modi said that crypto could be used to empower democracy. He is now reportedly taking a final decision on the country’s crypto legislation.
