PM Modi chairs meet on cryptocurrency; issues raised over cash laundering, terror financing dangers

Amid issues over deceptive claims of giant returns on cryptocurrency funding, Prime Minister Narendra Modi on Saturday chaired a gathering on the best way ahead on the problem, with authorities sources asserting that such unregulated markets can’t be allowed to turn out to be avenues for “money laundering and terror financing”.

It was strongly felt within the assembly that makes an attempt to mislead the youth by means of over-promising and non-transparent promoting needs to be stopped, the sources stated, signalling that robust regulatory steps are within the offing.

“The government is cognizant of the fact that this is an evolving technology, it will keep a close watch and take proactive steps. There was consensus also that the steps taken in this field by the government will be progressive and forward looking,” a supply stated.

The authorities will proceed to proactively interact with consultants and different stakeholders, sources added, noting that because the challenge cuts throughout geographical borders, it was felt that it’ll additionally require international partnerships and collective methods.

The assembly on the best way ahead for cryptocurrency and associated points was a really complete one.

“It 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 the world. Global examples and best practices were also looked at,” the supply stated.

The RBI has repeatedly reiterated its robust views in opposition to cryptocurrencies saying they pose severe threats to the macroeconomic and monetary stability of the nation and in addition doubted the variety of buyers buying and selling on them as properly their claimed market worth.

RBI Governor Shaktikanta Das on Wednesday had reiterated his views in opposition to permitting cryptocurrencies saying they’re a severe risk to any monetary system since they’re unregulated by central banks.

His feedback come forward of the RBI’s inside panel report on the contentious matter which is anticipated subsequent month.

The Supreme Court in early March 2020 had nullified the RBI round banning cryptocurrencies. Following this in February 5, 2021, the central financial institution had instituted an inside panel to counsel a mannequin of central financial institution’s digital forex.

The RBI had introduced its intent to return out with an official digital forex, within the face of proliferation of cryptocurrencies like Bitcoin about which the central financial institution has had many issues.

Private digital currencies/digital currencies/crypto currencies have gained recognition previously one decade or so. Here, regulators and governments have been sceptical about these currencies and are apprehensive in regards to the related dangers.

It may be famous that on March 4, 2021, the Supreme Court had put aside an RBI round of April 6, 2018, prohibiting banks and entities regulated by it from offering companies in relation to digital currencies.