India's Swadeshi Jagran Manch Calls for Outright Ban on Cryptocurrency

The Swadeshi Jagran Manch (SJM), an affiliate of the nationalist Rashtriya Swayamsevak Sangh, has reportedly passed a resolution demanding a ban on cryptocurrency in India. “Disobeying the ban should make person/entity liable to financial penalty,” the resolution states.

Swadeshi Jagran Manch Wants Crypto Outrightly Banned in India

The Swadeshi Jagran Manch (SJM), the Indian economic, political, and cultural organization affiliated with the nationalist Rashtriya Swayamsevak Sangh, reportedly passed a resolution about cryptocurrency Sunday.

SJM co-convenor Ashwani Mahajan told PTI publication: “The resolution was passed by the 15th Rashtriya Sabha of the Swadeshi Jagran Manch, which concluded in Gwalior today.”

The resolution states:

The government should outrightly ban buying, selling, investing and otherwise dealing in cryptocurrencies by any person resident in India.

It also mandates crypto investors to sell or exchange their cryptocurrencies within a short period of time, subject to the provision of submitting information to the Income Tax department. In addition, the resolution emphasizes, “Disobeying the ban should make person/entity liable to financial penalty.”

The SJM argued that giving cryptocurrency recognition in India could lead to heavy speculation which could adversely impact the country’s financial market. The organization elaborated:

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

In its resolution, the SJM further called on the Union ministries of consumer affairs and corporate affairs to launch an “aggressive” consumer awareness campaign after banning cryptocurrencies. The organization stressed the need to advise people not to fall prey to “deceptive advertisements” it claims are being circulated by cryptocurrency exchanges.

The Swadeshi Jagran Manch also discussed central bank digital currency (CBDC), which the central bank, the Reserve Bank of India (RBI), is working on.

“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,” the SJM’s resolution adds, noting:

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.

The Swadeshi Jagran Manch’s resolution echoes what the central bank has been saying about cryptocurrency. In its recent meeting of the central board of directors, the RBI said that cryptocurrency must be fully banned and that a partial ban will not work. The central bank has also repeatedly voiced serious concerns regarding cryptocurrency, which it said could negatively impact the country’s financial system.

A cryptocurrency bill was listed to be taken up in the winter session of parliament. However, the bill was not introduced and the government is reportedly reworking the bill. Indian Prime Minister Narendra Modi is reportedly taking a final decision on the country’s crypto legislation. He recently said that crypto should be used to empower democracy.