The cryptocurrency situation in India continues to worsen. The president of the IT industry body Nasscom said that cryptocurrencies are illegal. During the last week, Indian authorities have taken different measures to avoid virtual currencies to continue their expansion in the country.
For example, during this week, the local police has arrested the co-founders of an important virtual currency exchange (Unocoin) for operating a Bitcoin ATM in the country.
Debjani Ghosh, president of the National Association of Software and Services Companies (Nasscom), said that it is very clear that virtual currencies were illegal. The information has been released by the Business Line on Thursday.
The association works by safeguarding technology startups in India in terms of regulatory and legal issues.
On the matter, Ghosh said:
“It is the law of the land and hence, we have to work with it. If we do not agree, we have to go back to the government and speak about why cryptocurrencies aren’t correct. “
In India, virtual currencies are not considered as a legal means of payment as in other countries. However, they have not been considered illegal.
During the last months, different players in the country have been asking the government to clarify the situation regarding cryptocurrencies. At the same time, the Reserve Bank of India has implemented a restrictive policy toward virtual currencies. For example, banks and other companies are banned from providing services to those firms and individuals working with virtual currencies.
About the decision to arrest the co-founder of Unocoin, Nasscom decided not to make any comments on the matter. However, the agency said that they will be looking to ‘synergise technological development and policy making.’
The local cryptocurrency exchange Zebpay had to suspend withdrawals and deposits in fiat currency since it is not able to receive financial services from other companies. The government has been doing everything that it was able to avoid the crypto market to grow.