Will Govt Regulate Digital Currencies In India? Misleading Ads Is a Big Concern
Reportedly, the Indian government is planning progressive and forward-looking measures on issues related to digital currencies.
Discussion On Allowing Digital Currency
This move looks likely to be a departure from its earlier attempts to restrict the use of virtual coins in the country.
During this meeting, it was decided that the government will continue to proactively engage with experts and other stakeholders on the evolving technology, according to the sources.
So far, the spokesperson from the prime minister’s office has declined to comment on the subject.
Ban On Digital Currency
Earlier, there have been calls in India to impose stricter rules for transactions in virtual coins.
According to them, an unregulated environment may push more domestic savings toward the asset class and could endanger household savings.
Considering the past few years, India has had a hot-and-cold relationship with digital currencies.
Earlier, it effectively banned crypto transactions in 2018 when a string of frauds came into picture.
That time, the Modi government suddenly decided to eliminate 80% of the nation’s currencies.
However, the Supreme Court struck down the restriction in March 2020.
As of the Reserve Bank of India remains a critic, but is now working on a digital currency.
Crypto Bill On Horizon
It seems that the government may bring in a crypto bill for the cabinet’s approval.
In the meeting there was a conclusion that attempts to mislead the country’s younger generation through over-promising and non-transparent advertisements should be stopped.
Further adding that the unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing, sources said.
Apart from this, the meeting also considered global examples and best practices.
The meeting highlighted that India should seek global partnerships and collective strategies on the issue, as per the sources.
In the next move, India’s parliamentary panel on finance is scheduled to meet industry experts and associations.
The plan is to have a further discussion about the challenges and opportunities in crypto finance on Monday.