Narendra Modi, the Prime Minister of India, on Saturday chaired a meeting on crypto in India.
During the meeting, the officials present agreed that some crypto platforms are misleading the youth of the country. And that there is a need to stop non-transparent advertisements.
Indian Lawmakers And Cryptocurrencies
The meeting comes days after Reserve Bank of India (RBI) governor Shaktikanta Das sounded an alarm on cryptocurrencies. He also cautioned investors on the potential pitfalls. He said the crypto market was a cause for concern to the macroeconomic and financial stability of the country’s economy. Other lawmakers in India have also expressed concerns around the potential misuse of crypto for laundering money and financing terrorism efforts.
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Despite this, more and more Indians are beginning to get on the crypto train. Several Bollywood stars have even promoted cryptocurrency trading in recent weeks.
In March, the Indian government considered a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets. However, from the meeting yesterday, the government is planning progressive and forward-looking measures on issues related to cryptocurrencies. This move is a departure from its earlier attempts to restrict the use of digital assets.
Earlier this month, a high-profile Indian politician reportedly said that the country would introduce laws that welcome innovation around blockchain technology.
In an August 2021 report, Chainalysis announced that India had ranked second in the global cryptocurrency adoption index. According to the data, India’s crypto market has grown 641% over the past year.
Prime Minister Holds Crypto Meeting
According to local news, the Saturday meeting was on the way forward for cryptocurrency and related issues. There were also discussions regarding how to stop non-transparent advertisements that mislead young investors.
“It was strongly felt that attempts to mislead the youth through over- promising & non-transparent advertising be stopped,” government sources said.
Total crypto market at $2.773 Trillion | Source: Crypto Total Market Cap from TradingView.com
RBI Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) chairperson Ajay Tyagi were present at the meeting held in New Delhi.
During the meeting, there was a consensus that unregulated crypto markets cannot become avenues for money laundering and terror financing. According to the report, the government also plans to keep a close watch and take proactive steps, whenever necessary, on this evolving technology.
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The officials also reportedly agreed that the government would take progressive and forward-looking steps in the crypto industry. It would also consider global partnerships and collective strategies since the crypto issue is cross-border.
Featured image by CoinMarketCap, Chart by TradingView.com