Crypto: Center Reflects On Progressive Measures On Digital Currency

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NEW DELHI: India is planning gradual and forward-looking action on cryptocurrency issues, a move that could deviate from its earlier attempts to restrict the use of virtual coins, according to people familiar with the matter.
Prime Minister Narendra Modi led a review meeting on digital currency on Saturday, and it was decided that the government will continue to proactively engage with experts and other stakeholders on the evolution of technology the people said, asking not to be identified.
A spokesperson for the prime minister’s office declined to comment.
There have been calls in India to impose stricter rules for virtual coin transactions, as an unregulated environment can push domestic savings further into the asset class and could endanger household savings.
India has had a hot and cold relationship with digital currencies over the past few years.
In 2018, it effectively banned crypto transactions after a series of frauds following Modi’s sudden decision to wipe out 80% of the country’s currencies, but the Supreme Court overturned the restriction in March 2020.
The Reserve Bank of India remains a critic, but is now working on a digital currency. The government can present a crypto bill for cabinet approval.
The meeting also concluded that attempts to mislead the country’s younger generation with overly promising and non-transparent ads should be stopped, the people said.
It was also discussed that unregulated crypto markets cannot be allowed to become avenues for money laundering and terrorist financing, they said.
The meeting also looked at global examples and best practices, the people said. It was stressed that India should seek global partnerships and collective strategies on the issue, they said.
The parliamentary finance panel is scheduled to meet with industry experts and associations on the challenges and opportunities in crypto finance on Monday.


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