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New DelhiPrime Minister Narendra Modi on Saturday chaired a meeting on the way forward on the issue, amid concerns over misleading claims of huge returns on cryptocurrency investments, with government sources saying such unregulated markets are prone to “money laundering and panic”. Opportunity cannot be allowed to happen. financing”.
It was strongly felt in the meeting that attempts to mislead the youth through over-promises and non-transparent advertising should be stopped, with sources indicating that stronger regulatory steps are in the pipeline.
“The government is aware of the fact that this is an evolving technology, it will keep a close watch and take proactive steps. It was also agreed that the steps taken by the government in this area would be progressive and forward-looking.”
The government will continue to actively engage with experts and other stakeholders, sources said, adding that since the issue crosses geographical boundaries, it was felt that it would also require global participation and collective strategies.
The meeting was very broad on the way forward for cryptocurrency and related issues.
“It was also the result of a consultation process as RBI, Ministry of Finance, Ministry of Home Affairs had conducted a detailed exercise on this as well as consulted experts from across the country and the world. Global examples and best practices were also looked at,” the source said.
RBI has repeatedly reiterated its strong views against cryptocurrencies, stating that they pose a serious threat to the country’s macroeconomic and financial stability and the number of investors trading on them as well as their claimed Doubt the market value as well.
RBI Governor Shaktikanta Das on Wednesday reiterated his view against allowing cryptocurrencies, saying they pose a serious threat to any financial system as they are unregulated by central banks.
His remarks come ahead of RBI’s internal panel report on the controversial subject, which is expected next month.
In early March 2020, the Supreme Court struck down an RBI circular banning cryptocurrencies. Subsequently, on February 5, 2021, the central bank constituted an internal panel to suggest the model for the central bank’s digital currency.
The RBI had announced its intention to come up with an official digital currency in the face of the proliferation of cryptocurrencies such as bitcoin, about which the central bank had many concerns.
Private digital currencies/virtual currencies/cryptocurrencies have gained popularity over the past decade. Here, regulators and governments are skeptical about these currencies and are apprehensive about the associated risks.
It may be noted that on March 4, 2021, the Supreme Court set aside the RBI circular dated April 6, 2018, barring banks and entities regulated by it from providing services in respect of virtual currencies.
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