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 currency.
Cryptocurrencies are a very serious concern from a macro economic and financial stability point of view, Das said on Wednesday.
The meeting was a comprehensive one and there were also discussions regarding how to stop advertisements that over promise and mislead the young investors.
The meeting was also 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.
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.
Govt will continue to pro-actively engage with the experts and other stakeholders, sources said.
Since the issue cuts across individual countries’ borders, it was felt that it will also require global partnerships and collective strategies.
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 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.
The union government 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.
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