Cryptocurrency is decentralized digital money based on blockchain technology that is used to buy regular goods and services. Cryptocurrency is a medium of exchange that is digital, encrypted and decentralized. Bitcoin was the first cryptocurrency and assures a form of transaction and verified to record it in the form of a program called a blockchain. It is very popular and has triggered the launch of hundreds of other cryptocurrencies.

PM Narendra Modi in a crucial meeting said to consider the regulatory prospects for cryptocurrencies with the RBI brass and Ministries of Home Affairs and Finance, where a strong consensus was reached to stop “attempts to mislead the youth through over-promising and non-transparent advertising.”

The meeting was brought ahead because of a parliamentary committee hearing on Monday with Industry experts on the challenges and opportunities that cryptocurrencies have thrown up. It was an essential step taken after RBI governor Shakti Kanta Das cautioned investors against Cryptocurrencies. He said the crypto market was a cause of concern to the central bank from the perspective of macro-economic and financial stability.

The notion of the unregulated crypto markets cannot become avenues for money laundering and terror financing. The meeting also reached an agreement that the steps are taken in the field of cryptocurrency and related issues will be forward-looking.

It was also felt that the issue is a global one and “cuts across individual countries borders.” “Since the issue cuts across individual countries” borders, it was felt that it will also require global partnerships and collective strategies.”

In the absence of a clear regulatory framework, the youth have been betting on cryptocurrencies for an easy return, there is still uncertainty on the government treatment for the same. 

The supreme court has lifted the ban on the trading of cryptocurrencies imposed by the central bank, the RBI continues to have concerns over them.

The conclusion of the meeting came up with a comprehensive and consecutive process between RBI, the Home Ministries with experts on cryptocurrency in India and abroad.

“The Government is cognizant of the fact that this is an evolving technology and global examples and best practices were also looked at, “the sources said.

Also, a consensus came up that the steps taken in this field by the government will be progressive and forward-looking, as per the sources saying that it will continue to proactively engage with experts and stakeholders.

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