PM Modi chairs a high-level meet over the unregulated crypto market

Govt to engage proactively with experts, stakeholders for steps on the necessary framework for crypto currency markets

November 14, 2021

PM Modi chairs a high-level meet over the unregulated crypto market

Amid concerns of crypto misuse for money laundering & terror financing, PM chairs meeting

As per the government sources, on Saturday Prime Minister Narendra Modi chaired a high-level meeting on crypto currency and related issues.

According to the sources, the meeting was an outcome of a consultative process as the Reserve Bank of India, the Finance Ministry, and the Home Ministry had carried out an elaborate exercise on the issues, besides consulting experts from across the country and the world.

The high-level meeting comes after RBI Governor Shaktikanta Das sounded an alarm on crypto currencies, cautioning investors on the potential pitfalls of digital currency.

Amid concerns over misleading claims of huge returns on crypto currency investment, Prime Minister Narendra Modi on Saturday chaired a meeting on the way forward on the issue, with government sources asserting that such unregulated markets cannot be allowed to become avenues for “money laundering and terror financing”.

During the meeting, all the facets of crypto currency were deliberated upon. It was discussed that unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing.

The sources also said that the government felt strongly that attempts to mislead young investors through over-promising and non-transparent advertising must be prevented.

The sources said, “The government is cognizant of the fact that this is an evolving technology, and hence the government will keep a close watch and take proactive steps. There was also consensus that the steps taken in this field by the government will be progressive and forward-looking.”

The government will continue to proactively engage with the experts and other stakeholders for further consultation on this issue. Since the issue cuts across individual country’s borders, it was felt that it would also require global partnerships and collective strategies, sources said.

On November 10, RBI Governor Shaktikanta Das had warned that cryptocurrencies are a very serious concern from a macro economic and financial stability point of view.

The Supreme Court in early March 2020 had nullified the RBI circular banning cryptocurrencies. Following this on February 5, 2021, the Central Bank had instituted an internal panel to suggest a model of the central bank’s digital currency.

The RBI had announced its intent to come out with an official digital currency, in the face of the proliferation of crypto currencies like Bitcoin about which the Central Bank has had many concerns.

[With Inputs from IANS]

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