New Delhi: The government views the regulation of Cryptocurrency “advanced and progressive” with government sources that explain that the market that is not regulated for digital currencies cannot be allowed to be a way for money laundering and terror financing.
After the meeting managed by PM Narendra Modi on Saturday, there was a strong view that efforts to mislead youth through non-transparent advertisements, that “promises”, need to be stopped.
While the government and the RBI discussed laws for several months now, there have been interest in interest in Cryptocurrency with many individuals, including senior citizens who invest in private digital currencies.
Reserve Bank of India (RBI) consistently maintains the need to ban personal digital currencies.
PM Meeting comes with a background of hope that the government can immediately package bills, something that has been planned during the budget session to “ban all personal cryptocurrency in India”.
After the meeting, the official source said, the government would keep a close watch and take proactive steps because it was aware of this fact was a growing technology.
While looking to engage with experts and other stakeholders, those who attended the meeting were also views that regulations would require global partnerships and collective strategies.
The source said that PM held a comprehensive meeting on the way forward for Cryptocurrency and related issues.
It follows the consultative process as the RBI, the Ministry of Finance and the Ministry of Home Affairs has conducted complicated exercises on problems and consulted with experts from all over the country and the world.
Global examples and best practices are also seen.
In 2019, the government has pointed to the inter-minister panel headed by the Economic Secretary of Subhash Chandra Garg who has supported the Private Cryptocurrency ban.
Since then there has been an intense discussion about this problem while this sector has lobby hard to prevent complete prohibitions.
Earlier this year, the RBI had made his decision to seek the ban on the instrument after he had declared his serious concern.
While confirming that Blockchain technology must be encouraged, the central bank has questioned the purpose of cryptocurrency to be labeled as a currency.
It is said that currencies are sovereign rights and cannot be assigned to individual entities.
The problem of this legal instrument has not yet been resolved.
In addition, there is concern about volatility in the price regardless of its impact on the economy.
The central bank has also raised the security risk associated with the cryptocurrency, said it could cause money laundering and terror financing due to transaction anonymity.
The RBI has also designated the danger for macroeconomic management if this instrument is permitted because they will cause “serious risk” in the country’s financial system.
Earlier this year, Minister of Finance Nirmala Sitharaman said to TV channels that were not all windows for the cryptocurrency will be turned off and the cabinet record is being discarded to form further steps on this problem.