NEW DELHI: The Swadeshi Jagran Manch (SJM) has sought a complete ban on cryptocurrency and called for expediting a law related to digital currency by the Reserve Bank of India.
In its national conclave which concluded on Sunday, the RSS affiliate sought a timeframe to allow the people holding the cryptocurrency to exit from their stocks.
“The government should outrightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person residing in India,” the SJM national conclave resolution argued.
“Cryptocurrencies like Bitcoin, Ethereum should also not be recognised as asset or digital asset because it will indirectly become medium of exchange like currency.”
It also called upon the government to allow persons holding crypto currencies to sell or exchange the same within a short span of time subject to provision of submitting the information to I-T department.
“Government should ban online trading platform for buying, selling or otherwise dealing in crypto currencies or crypto-assets presently in circulation. Disobeying ban should make person/entity liable to financial penalty.”
Block chain technology should not be linked to cryptocurrencies only, it added. It also called upon the ministries of consumer affairs and corporate affairs to make aggressive consumer awareness campaign regarding ban on cryptocurrencies.
The law relating to issuing of digital currency by the Reserve Bank of India should be framed "quickly" and the Central Bank Digital Currency (CBDC) considered as legal tender, the Swadeshi Jagran Manch (SJM) said in its fifteenth national meet.
"The resolution was passed by the 15th Rashtriya Sabha of the Swadeshi Jagran Manch, which concluded in Gwalior today," the outfit's co-convenor Ashwani Mahajan told PTI.
The national meet had started on December 24.
"The government should out rightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person resident in India," the resolution demanded.
It also said that people holding cryptocurrencies can be allowed to sell or exchange the same within a short span of time, subject to provision of submitting information to the Income Tax department.
"Disobeying the ban should make person/entity liable to financial penalty," the resolution added.
The resolution passed at the SJM national meet argued that giving recognition to cryptocurrencies could lead to heavy speculation and adversely impact financial market.
"Recognition may also result in money laundering and terror financing as well as capital account convertibility from the back door," it added.
The Union ministries of consumer affairs and corporate affairs should roll out an "aggressive" consumer awareness campaign, after banning cryptocurrencies, to advice people not to fall prey to "deceptive advertisements" being circulated by the "so called cryptocurrencies' exchanges", especially in Tier-2 and Tier-3 cities, the SJM said in its resolution.
"The law relating to issuance of digital currency by the Reserve Bank of India should be framed quickly. The CBDC should be considered as legal tender," it said, adding, "Cryptocurrencies such as Bitcoin, Ethereum, etc should not be recognised as asset or digital asset because it will indirectly become medium of exchange like currency.
(With PTI Inputs)