NASSCOM President calls cryptocurrency illegal, NASSCOM issues clarification later

The head of National Association of Software and Services Companies (NASSCOM), an influential Indian IT Industry body, issued a public statement that cryptocurrency is illegal in India. According to reports, Debjani Ghosh, the president of NASSCOM, made this assessment about cryptocurrencies.

It was extremely frustrating to see an association like NASSCOM which is supposed to foster new technology make such misinformed statements. The Indian government has only said that cryptocurrencies are not legal tender, but they have said anything about the legal status of cryptocurrencies. Cryptocurrencies are perfectly legal in India and statements and incidents like these, only end up creating more FUD in the space.

NASSCOM issues clarification

Following media reports about NASSCOM’s stand, the organisation clarified its position on cryptocurrencies through a tweet. The organisation said that the statement was only a response to a media query and they simply reiterated RBI’s stance in their previous assessment. They also said that the previous statement doesn’t reflect their own stand on the issue. The industry body further added that the regulators should be accommodative of new technologies so that regulations can keep pace with innovation.

It is good to see NASSCOM caring enough to clarify its stand on cryptocurrencies, but it can certainly do a lot more to strengthen this technology in India. Since it works closely with the government, NASSCOM is in a great position to influence the regulators positively and remove some of the myths surrounding cryptocurrencies. We urge NASSCOM to take a leadership role for cryptocurrencies in the country.

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