Crypto India: Swadeshi Jagran Manch (SJM) demands absolute ban on crypto

The Rashtriya Swayamsevak Sangh (RSS) affiliated Swadeshi Jagran Manch (SJM) passed a resolution yesterday, calling for an absolute ban on cryptocurrencies in India. SJM, that had formerly been in news for levying Amazon as “East India Company 2.o”, is known for its radical suggestions to improve the Indian economy.

This time around they demanded that the government should “outrightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person resident in India”. However, they noted that the authorities may grant a short buffer period for investors to sell or exchange their cryptocurrencies, subject to the condition that they submit information to the Income-Tax authorities.

“Although there is no official information about this, it is estimated that about 20 million people have put their money in cryptocurrencies. People [mostly youth] of small and big cities and even villages are getting attracted towards it, because they feel that they can get quick profit by putting their money in it”

SJM claims, recognition will enable crypto crimes

SJM’s crypto ban resolution further pushed for penalties upon failure to abide by the updated law, as well as urged the authorities to launch an “aggressive” consumer awareness campaign post ban. Additionally, through this campaign, the organisation noted that Centre could prevent investors from falling prey to “deceptive advertisements” from cryptocurrency exchanges.

SJM argued that merely regulating crypto is not enough to protect the consumers from crypto crimes. The organisation alerted the government that recognition of cryptocurrencies could lead to illegal activities including money laundering, terror financing, and capital account convertibility ‘from the back door’.

“Recognition may also result in money laundering and terror financing as well as capital account convertibility from the back door”

Earlier this month, the Reserve Bank of India also reportedly seeked for a blanket ban on cryptocurrencies in India. In the meeting of the Central Board of Directors of Reserve Bank of India (RBI), it was speculated that the RBI called for an absolute ban on cryptocurrencies, levying them as a threat to macroeconomic and financial stability, along with exchange management.