Opinion: Banning cryptocurrencies in India would be a bad idea

The Electronic Frontier Foundation (EFF), a digital rights advocacy group, criticised the government’s proposed bill to ban cryptocurrencies.

India’s politicians want to out-do Turkey with a complete cryptocurrency ban. Enforcing that would be a bitter blow to digital privacy in the country. https://t.co/Uz0GuFQBPd

— EFF (@EFF) April 21, 2021

EFF described the proposed ban as “radical and excessive.”

“If authorities want to effectively enforce these rules, they would have to block and spy on traffic”, the article says.

According to the organization, with the bill’s approval the government would also cut off “fully legal” use cases for digital assets.

Representatives of the EFF called for expanding access to financial services in India. They believe that cryptocurrencies could help with this. The organization noted that in 2017 one in ten residents of the country did not have a bank account.

Rights advocates say that a ban on digital assets would lead to the spread of “illegal” resources that could abuse citizens’ trust.

In September 2020 emerged rumors of a possible ban on cryptocurrencies in India.

In February 2021 Bloomberg reported that the government would allow holders to withdraw digital assets within three to six months.

In March 2021 the authorities obliged companies to disclose cryptocurrency assets. It was also reported that India would consider a bill introducing criminal and administrative liability for traders and miners.

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