India is leaving itself vulnerable to corruption by attempting to ban cryptocurrencies such as Bitcoin (BTC), says Tim Draper.

Speaking to California-based media outlet Indica on Oct. 31, the pro-Bitcoin VC investor called on prime minister Narendra Modi to rethink the current hostile environment towards crypto.

Draper to Modi: don’t “go back to old ways”

India banned banks servicing industry businesses in 2018, with government think tanks now recommending a full crackdown on ownership and use. A court battle to decide the final outcome saw its latest delay last month.

“I am hoping Modi becomes the honest politician, but when he shut down Bitcoin I thought he is going back to the old ways,” Draper said.

“Creating more corruption”

It remains uncertain how the Indian state would implement a crypto ban should one come into law. As Cointelegraph reported, the country’s disastrous 2016 currency reform, which saw the value of some paper notes disappear in holders’ pockets overnight, added to the demand for Bitcoin investment.

Proponents argue cryptocurrency aids criminal activity such as money laundering, whereas reducing or even eradicating cash allows for a more transparent economy.

Draper likewise praised the concept of currency reform but added that outlawing Bitcoin leaves the door open for more, not less, corruption.

“I thought it was a good move; he is getting rid of corruption and trying to create a corruption-free state, but by blocking Bitcoin, he is creating more corruption and I think that is very dangerous for the country,” he added.

As Cointelegraph noted, Draper previously gained mixed reviews when he delivered considerably more vocal comments about India’s stance on crypto.

In July, he described the Indian government as “pathetic and corrupt.”

Delhi meanwhile remains keen on blockchain, with defence minister Rajnath Singh on Monday describing it as having transformed the face of warfare.