Concerns Over Crypto Money Laundering, Terror Financing, PM Chairs Meet

Prime Minister Narendra Modi chaired a key meeting on the way forward for cryptocurrrency today, government sources said amid concerns over misleading claims of huge returns on cryptocurrency investment. The issues of unregulated crypto markets and that they cannot be let to become avenues for "money laundering and terror financing" were discussed at the meet, they said.

The need to stop the attempts to mislead the youth through "over-promising and non-transparent advertising" was also touched upon at the meet, they added.

"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 added.

The RBI has repeately voiced its views against cryptocurrencies saying they are serious threat to the macroeconomic and financial stability of the country. RBI Governor Shaktikanta Das on Wednesday had reiterated his views against allowing cryptocurrencies saying they are a serious threat to any financial system since they are unregulated by central banks.

"The government is cognizant of the fact that this is an evolving technology hence it will keep a close watch and take proactive steps. There was consensus also that the steps taken in this field by the government will be progressive and forward looking," they sources said.

The meeting comes on the day the Congres has alleged a multi-crore Bitcoin scam and its cover-up by the BJP government in Karnataka and demanded that an independent investigation be conducted into the matter.

Addressing a press conference, Congress general secretary and chief spokesperson Randeep Surjewala asked what was the role of Karnataka Chief Minister Basavaraj Bommai, who was the state's home minister when the scam took place.