Indian Government confirms Can't Stop Crypto, But Must Be Regulated

After meeting Cryptocurrency can't be stopped but must be regulated, was the consensus in the meeting of the first-ever Parliamentary panel discussing the broad contours of Crypto Finance. The Standing Committee on Finance, chaired by BJP's Jayant Sinha, today met representatives of crypto exchanges, Blockchain and Crypto Assets Council (BACC), industry bodies, and other stakeholders to discuss concerns regarding the regulation and promotion of Cryptocurrency in India. There have been a lot of concerns from various quarters regarding investment potential and risks around Cryptocurrency in the country.

Present in the meeting were experts from Blockchain and Crypto Assets Council (BACC), top crypto exchanges, IIM Ahmedabad, industry chambers, and others. The committee members also highlighted the crypto ads that appeared in newspapers and news websites in the recent past to raise concern on ensuring the safety of investments made by crypto users.

The meetings have also come in the wake of RBI’s caution against cryptocurrencies. As per a PTI report, Governor Shaktikanta Das on Wednesday at an event said, “Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint. The government is actively looking at the issue and will decide on it. But as the central banker, we have serious concerns about it and we have flagged it many times.”

The panel's meeting assumes significance as it comes days after Prime Minister Narendra Modi chaired a high-level meeting with officials from various ministries and RBI on the issue of Cryptocurrency.

"We have called stakeholders from across the industry including operators of major exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who have done a very thorough study on the crypto finance," Mr. Sinha had told news agency PTI ahead of the meeting.

MPs now want government officials to appear before the committee and address their concerns. The official agenda of the meeting circulated to member MPs was, "Hearing of views of Associations/Industry experts on the subject - Crypto-Finance: Opportunities and Challenges".

“Government is very clear that it has to bring out something before Budget Session. This means it would try to conclude something in Winter Session,” the first source added. The crypto bill is still on the cards for the government. Finance Minister Nirmala Sitharaman had said in August this year that the Cabinet approval is awaited on the cryptocurrency bill.

Prime Minister Narendra Modi had also chaired a meeting this past Saturday on cryptocurrency to look at concerns around the use of digital currencies for illegal activities such as terror financing, money laundering, etc.