India's Internet and Mobile Association Calls for Crypto Regulation, Not Ban

The Internet and Mobile Association of India (IAMAI) appealed to the Indian government Wednesday not to ban cryptocurrencies.

The IAMAI is proposing the government introduce “robust mechanisms” to regulate the cryptocurrency sector because the country could see considerable benefits from digital assets such as job creation, according to a report from The Hindu Business Line.

“Given the scale and diversity, the good governance and regulation of the cryptocurrency ecosystem in India is critical and will give impetus to the government of India’s Digital India vision,” said the IAMAI.

Read more: India’s Central Bank Sees Pros and Cons With National Digital Currency

The Indian government is planning to introduce a bill into the parliament's ongoing budget session that would ban "private cryptocurrencies" but the scope of the bill is unclear.

However, India’s Minister of State for Finance, Anurag Thakur, said Friday the government needs to study national security risks posed by virtual currencies before making any decision on their legality.

The IAMAI previously helped the successful challenge of the central bank's ban on banking services for crypto firms that was overturned last March.