Modi Regulates Crypto Currency Use In India
Delhi -The Central government is in the process of formulating a digital currency strategy. Towards this, they are in the process of hiring experts from the industry to draft a regulation. PM Narendra Modi in this regard has already held a meeting to discuss and formulate a way forward for cryptocurrency and related issues.
The main purpose of doing this is to regulate the digital currency market in order avenues like cryptocurrency do not become a source of “money laundering and terror financing.” The Centre is likely to take regulatory measures against two deficiencies that go with the popularity of cryptocurrencies — over-promising and lack of transparency.
Measures have been taken to legalize the process, in order to avoid the scope of misleading and non-transparent advertising. After the regulatory meeting, sources shared that there are steps being taken in order unregulated crypto markets are not allowed to become avenues for money laundering and terror financing.
An initial review has been done with PM Modi already, after a series of discussions between the Finance Ministry and the Home Ministry along with the Reserve Bank of India (RBI). The three parties involved in extensive discussions also involve experts from across the country and the world. They are also considering global examples as a benchmark in the process.
As per sources, the Centre is aware and understands that cryptocurrency is an evolving technology. The government has a progressive, forward-looking
an approach based on pro-active engagement with experts and other stakeholders. During the meeting with PM Modi, it was also decided that the government will keep a close watch and take proactive steps to keep a check on the market.
Since the issues related to cryptocurrency cut across individual country borders, a long-term policy would thus require global partnerships and collective strategies. All arrangements have been made to bring a comprehensive bill on cryptocurrency in the coming Winter Session of Parliament, where-as the Standing Committee on Finance is scheduled to hold discussions on crypto assets in its next meeting on November 15.
The Reserve Bank of India has shared its reservation on cryptocurrencies. Their primary concern revolves around such assets, reiterating its long-standing position on the use of virtual currencies. In a statement issued by the RBI Governor Shaktikanta Das, she said, “There is no change in the RBI’s position.
We have major concerns around cryptocurrencies, which we have conveyed to the government. And, about investors, it is for each investor to do his/her due diligence and take a very careful and prudent call.” Sources say that India may not go for a complete ban, like China. However, government officials and experts say that there is a perception that the central bank’s objections to crypto investment are too stringent.
It is expected that India will take a moderate route. One of the topics, which needs clarification is whether cryptocurrencies get treated as a currency or an investment asset, though there is less scope of cryptocurrency getting status of currency in India. The status of being considered as a currency, also calls for a guarantee for their value, and who provides that?