Govt to engage proactively with experts, stakeholders for steps on necessary framework for cryptocurrency markets, says report
Prime Minister Narendra Modi today chaired a crucial meeting on the way forward for cryptocurrency and related issues, news agency ANI reported citing unnamed government sources.
The crucial meeting comes after Reserve Bank of India (RBI) governor Shaktikanta Das sounded alarm on cryptocurrencies, cautioning investors on the potential pitfalls of the digital currencies.
Cryptocurrencies are a very serious concern from a macro economic and financial stability point of view, Das said on Wednesday.
The meeting today was a comprehensive one and there were also discussions regarding how to stop advertisements that over-promise and mislead the young investors.
Sources told ANI that, during the meeting, unregulated crypto market issues were touched upon and that they cannot be let to become avenues for money laundering and terror financing.
Govt is cognizant of the fact that this is an evolving technology hence the government will keep a close watch and take proactive steps, the people said.
There was also consensus during the meeting that the steps taken in the field of cryptocurrency and related issues by the govt will be progressive and forward-looking.
The government will continue to proactively engage with experts and other stakeholders, sources added, noting that since the issue cuts across geographical borders, it was felt that it will also require global partnerships and collective strategies.
The meeting was an outcome of a consultative process as RBI, Finance Ministry, Home Ministry had done an elaborate exercise on it as well as consulted experts from across the country and world.
The fast paced developments in the crypto space come at a at a time when crypto craze remains elevated among Indian investors, especially the retail ones.
After Supreme Court in early March 2020 overturned the RBI’s order, which effectively lifted the ban on cryptocurrency trading in India, the craze in India has grown at a furious rate.
Following this in February 5, 2021, the central bank had instituted an internal panel to suggest a model of central bank’s digital currency.
The RBI had announced its intent to come out with an official digital currency, in the face of proliferation of cryptocurrencies like Bitcoin about which the central bank has had many concerns.
The union government, which has not yet enacted a law on cryptocurrencies is in consultation with industry experts, comments from various officials and ministers.
After several rounds of caution, the government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest.
Private digital currencies have gained popularity in the past one decade or so. But, regulators and governments have been skeptical about these currencies and are apprehensive about the associated risks.
