Ahead of potential ban in India, cryptocurrency entrepreneurs form lobby: Report

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Cryptocurrency entrepreneurs announced the creation of an industrial association that will lobby with the Indian government to fend off a potential ban.

The association known as ABCE (Association for Blockchain &, Crypto and Digital asset Entrepreneurs) intends to unite the industry and initiate dialogue with the government, The Economic Times reported.

"This is an opportunity for Indian entrepreneurs to create global startups early on. The proposed ban may destroy these young startups giving employment to thousands. To engage in a dialogue with the Government, entrepreneurs have joined hands together to form ABCE," Sidharth Sogani, CEO of CREBACO Global, a research firm, told the paper.

"Making this association is essential in getting the industry together, to have a dialogue with stakeholders in the Indian government, regulators and policymakers as their knowledge related to this industry is poor and unclear," said Jagdish Pandya, Chairman at BlockOn Group.

Also read: Regulate instead of banning cryptocurrencies in India, say entrepreneurs

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 is expected to be tabled in Parliament when the Budget session resumes on March 8.

According to the Lok Sabha bulletin, the bill aims to "create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses"

The Reserve Bank of India had in 2018 prohibited banks and other financial institutions from facilitating transactions involving cryptocurrencies. However, the Supreme Court had in March 2020 overturned the RBI order.

Entreprenuers have sought regulation of digital currencies, rather than a ban, Moneycontrol reported on January 30.