Misleading claims and massive masking of crypto pitfalls are a major concern for the Indian government. In past days, PM Narendra Modi chaired a meeting to discuss the issues and concerns regarding cryptocurrencies as a gateway to money laundering and terror financing. It was strong-felt in the meeting, that crypto assets are misleading. PM said the over-promising advertising for the crypto exponential growth should be stopped.
It was also an outcome of a consultative process as RBI, Finance Ministry, Home Ministry had done an elaborate exercise on it as well as consulted experts from across the country and the world. Global examples and best practices were also looked at, the source said.
Shaktikanta Das, governor of the Reserve Bank of India, reiterated his opposition to cryptocurrencies on Wednesday, saying they are a serious threat to any financial system because they are unregulated. His comments come ahead of the RBI internal panel report on the contentious topic next month.
In the past decade or so, digital currencies, virtual currencies, and cryptocurrencies have become more popular. Since then, RBI is monitoring cryptocurrencies and their growth. It is concerned with the proliferation of cryptocurrencies like Bitcoin, about which the central bank has had many concerns.