PM Narendra Modi Chairs Meet; Concerns Over Cryptocurrency’s Misuse In Terror Financing & Money Laundering

Attempts to deceive the youth through over-promising and non-transparent advertising were vigorously opposed at the meeting, according to the sources, implying that tough regulatory action is on the way.


Prime Minister Narendra Modi chairs a meeting on the way forward on the issue on Saturday, amid concerns about misleading claims of huge returns on cryptocurrency investments. With government sources asserting that such unregulated markets cannot be allowed to become avenues for “money laundering and terror financing.”

The group also concludes that attempts to deceive the youth through over-promising and non-transparent advertising should be prevented, according to the sources, implying that tough regulatory action is on the way.

“Because this is an emerging technology, the government will keep a close eye on it and take aggressive measures.” There was also agreement that the government’s actions in this area would be progressive and forward-looking, according to a source.

The government will continue to proactively engage with experts and other stakeholders, sources added, noting that since the issue cuts across geographical borders, it also require global partnerships and collective strategies.

The meeting on the way forward for cryptocurrency and related issues was a very comprehensive one.

Here’s a short coverage by Times Now uploaded on Twitter giving insights about the meet.

Kanchan Gupta, Senior Adviser, Ministry of Information & Broadcasting, Government of India, Posted a Tweet writing, “Prime Minister narendramodi chaired a meeting Saturday on the way forward for cryptocurrency and related issues. The meeting followed a consultative exercise by RBI, Fin Min and MHA with experts from India and the world. Global examples and best practices were looked at.”

THE RBI MENACE OVER CRYPTOS

The Reserve Bank of India has often stated its opposition to cryptocurrencies, claiming that they pose a severe threat to the country’s macroeconomic and financial stability. It has also questioned the number of investors trading on them, as well as their alleged market value.

On Wednesday, RBI Governor Shaktikanta Das repeated his opposition to cryptocurrencies, claiming that they pose a severe threat to any financial system because they are uncontrollable by central banks.

His remarks came ahead of the release next month of the RBI’s internal panel report on the sensitive matter.

The RBI circular banning cryptocurrency was declared null and void by the Supreme Court in early March 2020. Following this, on February 5, 2021, the central bank established an internal panel to develop a digital currency paradigm.

The RBI declared its intention to create an official digital currency in response to the proliferation of cryptocurrencies such as Bitcoin, which the central bank has expressed worry over.

In the last decade or so, private digital currencies, virtual currencies, and crypto currencies have grown in popularity. Regulators and governments in this country have been sceptical of digital currencies and concerned about the hazards they entail.

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