Unregulated crypto cannot be allowed for money laundering, terror financing in India: PM Narendra Modi

PM Modi on Cryptocurrency: Prime Minister Narendra Modi chaired a comprehensive meeting on the way forward to cryptocurrency and related issues in which it was discussed that unregulated crypto cannot be allowed for money laundering and terror financing in India. It has to be noted that there are various opinions on the legalities and regulations of cryptocurrencies in India.

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On Thursday, Prime Minister Narendra Modi while addressing the 'Sydney Dialogue' in a digital medium pointed out certain important aspects about cryptocurrency. PM Narendra Modi said that all democratic nations work together to ensure that cryptocurrency or bitcoin does not end up in wrong hands.

PMO tweeted from its official Twitter handle, "Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth: PM @narendramodi."

Take crypto-currency or bitcoin for example.

It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth: PM @narendramodi

— PMO India (@PMOIndia) November 18, 2021

On Tuesday, RBI Governor Shaktikanta Das expressed his concerns over cryptocurrencies, saying there are "far deeper issues" involved in virtual currencies that could pose a threat to the country's economic and financial stability.

The statement comes within a few days of the Prime Minister holding a meeting on the cryptocurrencies amid worries over misleading claims of huge returns on cryptocurrency investment.

On Monday, PTI had reported that the Parliamentary Standing Committee on Finance discussed the pros and cons of crypto finance with various stakeholders, and several members were in favour of regulating crypto currency exchanges rather than an outright ban on such currencies.

The government is likely to introduce a bill on cryptocurrencies during the winter session of Parliament beginning November 29, according to the PTI report.

While addressing the 8th SBI Banking and Economic Conclave, Das pointed out that when the RBI says it has serious concerns on crypto currencies, there are far deeper issues involved and a deeper discussion is needed.

When the RBI, after due internal deliberation, says that there are serious concerns on macro-economic and financial stability, there are deeper issues, which need much deeper discussions and much more well-informed discussions, he noted.

On the recent meeting of the Parliamentary Standing Committee on Finance on crypto currencies, Das said he was not privy to what the Standing Committee discussed and deliberated.

According to an ANI report, the meeting on cryptocurrency which took place last Saturday, was held after a consultative process done by the Reserve Bank of India (RBI), the Finance Ministry and the Ministry of Home Affairs (MHA) in which global examples and best practices studied.

The ANI report stated that according to sources, the government strongly feels that attempts to mislead the youth through over-promising and non-transparent advertising have to be stopped. The sources further informed that the government is cognizant of the fact that this is an evolving technology and hence it will keep a close watch and take proactive steps.

Today while addressing the 'Sydney Dialogue', the Prime Minister has also said, "India's IT talent helped to create the global digital economy. It helped cope with the Y2K problem. It has contributed to the evolution of technologies and services we use in our daily lives."

India's IT talent helped to create the global digital economy.

It helped cope with the Y2K problem.

It has contributed to the evolution of technologies and services we use in our daily lives: PM @narendramodi

— PMO India (@PMOIndia) November 18, 2021

Coming back to the meeting on cryptocurrency, it was felt that since the issue cuts across the borders of individual countries, it was felt that it will also require global partnership and collective strategies.