NEW DELHI, 27 December 2021, (TON): While the Union government mulls law to regulate cryptocurrency, Swadeshi Jagran Manch (SJM), an affiliate of Rashtriya Swayamsevak Sangh (RSS), has demanded a ban on the private digital currency but supported the exploration of blockchain technology.

In a resolution passed following the two-day Rashtriya Sabha of SJM in Gwalior, the outfit said that virtual currency should be banned citing reasons such as “there is no underlying asset”, “issuer is not identifiable”, “recognition of cryptocurrency may lead to heavy speculation which may adversely impact financial markets” and “recognition may also result in money laundering and terror financing”.

Putting forth its demand for the ban, the SJM said persons holding cryptocurrencies may be allowed to sell or exchange the same within a short period, subject to the provision of submitting the information to the income tax department.

It has also asked the government to create awareness and to come up with a law for the issuance of digital currency by the RBI.

The SJM said “allowing cryptocurrency shall result into capital account convertibility from the back door.”

SJM, however, said that blockchain technology should not be linked to cryptocurrencies only and the use of this technology in all spheres of economic or social activities must be encouraged.