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PM’s meeting on cryptocurrencies raises concerns over risks of money laundering, terrorist financing

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PM’s meeting on cryptocurrencies raises concerns over risks of money laundering, terrorist financing

New Delhi, Nov 13 (PTI) Amid concerns over misleading claims of huge returns on investment in cryptocurrencies, Prime Minister Narendra Modi on Saturday chaired a meeting to decide the future course of action on the issue.

Government sources stressed that such unregulated markets cannot be allowed to become a source of “money laundering and terrorist financing”.

Sources said that it was strongly felt in the meeting that attempts to mislead the youth through exaggerated promises and non-transparent advertisements should be stopped. He indicated that strong regulatory measures would be taken in this regard soon.

A source said, “The government is aware that this is an evolving technology. She will keep a close watch on it and take proactive steps. It was also agreed that the steps taken by the government in this area would be progressive and forward thinking.

Sources said the government would actively engage with experts and other stakeholders. As the subject transcends geographical boundaries, it was felt that it would also require global participation and collective strategies.

The meeting was positive on the way forward for cryptocurrencies and related issues.

“It is a result of the consultation process,” the source said. RBI, Ministry of Finance, Ministry of Home Affairs held detailed discussions on this as well as consulted experts from across the country and the world and best practices and examples from around the world were taken into account.

RBI has repeatedly reiterated its firm stand against cryptocurrencies, saying it could pose a serious threat to the country’s macroeconomic and financial stability. The central bank has also raised doubts on their market value.

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RBI Governor Shaktikanta Das had on Wednesday reiterated his views against allowing cryptocurrencies, saying they pose a serious threat to any financial system as they are not controlled by central banks.

The report of RBI’s internal panel on cryptocurrencies is expected next month.

The Supreme Court struck down the RBI circular banning cryptocurrencies in early March 2020. After this, on February 5, 2021, the central bank constituted an internal committee to suggest the model of this digital currency.

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