Amid concerns over misleading claims of huge returns on investment in cryptocurrency, Prime Minister Narendra Modi chaired a meeting to take necessary steps in this regard. Government sources stressed that such unregulated markets could not be allowed to become a source of money laundering and terrorism financing.
Sources said the meeting stressed the need to stop attempts to mislead the youth through exaggerated promises and non-transparent advertisements. He indicated that strong regulatory measures would be taken soon.
The government is developing technology for surveillance
“The government is aware that this is an evolving technology,” a source said. He will keep a close eye on this and take necessary action. It was also agreed that the steps taken by the government in this area would be progressive and forward thinking.
The government will actively engage with experts and other stakeholders, sources said. The topic is beyond geographical boundaries and is expected to require global partnerships and collective strategies. The meeting was positive on the way forward for cryptocurrency and related issues.
Attended meetings of RBI, Ministry of Finance and Ministry of Home Affairs
The RBI, the Ministry of Finance and the Ministry of Home Affairs discussed this in detail and also took the advice of experts from the country and the world and considered examples from around the world. The RBI has repeatedly reiterated its firm stance against cryptocurrency, saying it could pose a serious threat to the country’s macroeconomic and financial stability. The central bank has also expressed doubts about their market value.
Cryptocurrency is not regulated by central banks
RBI Governor Shaktikant Das on Wednesday reiterated his opposition to allowing cryptocurrency. He said they were a serious threat to any financial system as they were not controlled by central banks. The report of the RBI’s internal panel on cryptocurrency is expected next month.