New Delhi: Amid concerns over misleading claims of huge returns on cryptocurrency investment, Prime Minister Narendra Modi chaired a meeting on Saturday on the way forward on the issue, with government sources claiming such markets unregulated cannot be allowed to become avenues of “money laundering”. and the financing of terrorism “.
At the meeting, it was strongly felt that attempts to deceive young people through overly promising and non-transparent ads should be stopped, the sources said, signaling that strict regulatory measures are in sight.
“The government is aware that this is an evolving technology, it will closely monitor and take proactive measures. There was also a consensus that the measures taken in this area by the government will be progressive and forward-looking, “said a mentioned source.
The government will continue to proactively engage with experts and other stakeholders, sources added, noting that since the problem transcends geographic borders, it was felt that it will also require global partnerships and collective strategies.
The meeting on the way forward for cryptocurrency and related issues was very comprehensive.
“It was also the result of a consultative process as the RBI, the Ministry of Finance, the Ministry of the Interior had done an elaborate exercise on this subject as well as consulted experts from all over the country and the world. Global examples and best practices were also discussed, ”he added. the source said.
The RBI has repeatedly reiterated its firm stance against cryptocurrencies, claiming that they pose serious threats to the country’s macroeconomic and financial stability and has also questioned the number of investors trading there as well as their market value. claimed.
RBI Governor Shaktikanta Das reiterated his views against the authorization of cryptocurrencies on Wednesday, saying they pose a serious threat to any financial system because they are not regulated by central banks.
His comments precede the RBI’s internal panel report on the contentious subject which is expected next month.
The Supreme Court canceled the RBI circular banning cryptocurrencies in early March 2020. As a result, on February 5, 2021, the central bank instituted an internal panel to propose a central bank digital currency model.
The RBI had announced its intention to release an official digital currency, in the face of the proliferation of cryptocurrencies like Bitcoin about which the central bank had many concerns.
Private digital currencies / virtual currencies / crypto currencies have grown in popularity over the past decade or so. Here, regulators and governments have been skeptical about these currencies and fear the associated risks. Also Read: WhatsApp ‘Friend in Need’ Scam on the Rise: Here’s All You Need To Know, How To Stay Safe
It can be noted that on March 4, 2021, the Court of Cassation canceled an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services in the field of virtual currencies. Also Read: JPC Members Oppose Proposal To Reduce Penalty Amount In Data Protection Bill