PM Modi chairs crucial meeting on cryptocurrency, other related issues

On Saturday, Prime Minister Narendra Modi chaired a comprehensive meeting. Government sources said that the meeting was held to determine the way forward for cryptocurrency and related issues in which it was decided that unregulated crypto cannot be allowed for money laundering and terror financing.

The meeting was held after a consultative process done by the Reserve Bank of India, the Finance Ministry, and the Ministry of Home Affairs (MHA) in which global and Indian experts were consulted and global examples and best practices studied.

According to sources the government strongly feels that attempts to mislead the youth through over-promising and non-transparent advertising have to be stopped.

It was also discussed that unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing. Sources said that the government is cognizant of the fact that this is an evolving technology hence it will keep a close watch and take proactive steps.

There was consensus also that the steps taken in this field by the government will be progressive and forward-looking. The government will continue to pro-actively engage with the experts and other stakeholders.

Since the issue cuts across individual countries’ borders, it was felt that it will also require global partnerships and collective strategies. The high-level meeting comes after RBI Governor Shaktikanta Das sounded an alarm on cryptocurrencies, cautioning investors on the potential pitfalls of digital currency.

On November 10, Das had said that cryptocurrencies are a very serious concern from a macroeconomic and financial stability point of view.