PM Modi chairs meeting on cryptocurrency & related issues; progressive steps to be taken

With RBI and Finance ministry voicing its concerns lately on regulation of cryptocurrency in India, Prime Minister Narendra Modi on Saturday chaired a meeting for cryptocurrency and related financial issues with the experts, seeking a discussion on formulating methods to regulate the widespread use of the online currency, sources informed ANI. 

PM Modi takes note of cryptocurrency use & regulation, holds a meeting with experts

The meeting held a detailed discussion on the persisting issue and comprehensively detailed every aspect concerning the use of cryptocurrency.  PM Modi also heard the suggestions made by the experts regarding the same. Based on the ANI report, the sources privy with the details about the matter apprised that PM Modi and the financial panel strongly felt that attempts to mislead the youth on cryptocurrency were being done through over-promising & non-transparent advertising, and it needs to be curtailed.

Illegal use of cryptocurrency to fund terror organizations and for money laundering was also discussed. "It was also discussed that unregulated crypto markets cannot be let to become avenues for money laundering & 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," sources informed further.

They added, "There was consensus also that the steps taken in the field of cryptocurrency & related issues by the Govt will be progressive & forward-looking. Govt will continue to pro-actively engage with the experts and other stakeholders on the issue."

The meeting comes after the RBI, Finance Ministry, Home Ministry conducted elaborate research to understand the scenario and consulted experts from across the country & world on the same. On Monday, as per reports, the Parliamentary Standing Committee on Finance called cryptocurrency associations and industry experts for a meeting on ‘CryptoFinance: Opportunities and Challenges.’

RBI & SEBI re-iterates scepticism on cryptocurrency's legalisation

Over the last several weeks, the Finance Ministry has held multiple discussions with financial industry authorities and industry stakeholders to discuss the need for a regulatory framework on cryptocurrencies. Though the Reserve Bank of India and the Securities and Exchange Board of India have expressed their concerns about the sector's unregulated growth, a common opinion appears to be forming among officials in favour of designating cryptos as an asset class rather than legal money.

While the RBI has expressed reservations about cryptocurrencies getting recognized as legal tender or on pace with money, the SEBI, the capital market regulator, has expressed scepticism about regulating them as a financial asset.

On Wednesday, RBI Chief Shaktikanta Das repeated the central bank's strong opposition to cryptocurrencies, saying they pose major challenges to the country's macroeconomic and financial stability. He also questioned the number of investors who trade them and their purported market value. Governor Shaktikanta Das reiterated his opposition to cryptocurrencies, claiming that they are uncontrolled by central banks, hence, they pose a severe threat to any financial system. His remarks came ahead of the release next month of the RBI's internal panel report on the sensitive matter.

With Inputs from Agencies

Image: PTI