Indian Prime Minister Stated That All Democratic Nations Should Work Together On Cryptocurrency

Indian Prime Minister Narendra Modi during a virtual keynote address at the Sydney Dialogue said that cryptocurrencies must not fall into the "wrong hands and spoil our youth" and urged all democratic nations to work together to ensure such a thing does not happen. "We are in a time of transformation," The conference hosted by the Australian Strategic Policy Institute, saw the Prime Minister emphasize the impact of the Digital Age that "occurs just once in a generation, where technology and data are becoming new weapons."

In his speech at the Sydney Dialogue, PM Modi further stated that the world has ushered in a new era of opportunities for progress and prosperity. "But we also face new risks and new forms of conflict across diverse threats, from sea-bed to cyber to space. Technology has already become a major instrument of global competition and key to shaping the future international order," he said.

In the meeting, it was discussed that unregulated cryptocurrency markets cannot be allowed to become avenues for money laundering and terror financing — a point that the Prime Minister reiterated during his keynote earlier today. That said, government sources did tell PTI that it is conscious of the fact that cryptocurrencies are evolving technology and will keep a close watch and take proactive steps towards its regulation.

Other than the classification and taxation, the government is also looking to bring regulations around the advertisements by such crypto platforms. The ET report mentions that the government may prohibit crypto exchanges and platforms from "active solicitation." In effect, this will likely mean a limit on the numerous ads that suggest people invest their money in cryptocurrencies, without warning them of the possible pitfalls.

Last week, PM Modi chaired a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and terror financing. 

The sources mentioned that the details of the bill are being finalized by the government and that the bill could be presented before the cabinet for consideration in the next two to three weeks.

The government is likely to introduce a bill on cryptocurrencies during the winter session of Parliament beginning November 29.