Indian Prime Minister Narendra Modi held a crypto conference over the weekend and officials in attendance agreed that some crypto platforms should mislead investors and that these services should be banned. We read more about it in our latest crypto news.
The meeting with the Indian Prime Minister takes place a few days after the governor of the reserve bank, Shaktikanta Das, sounded the alarm about crypto and crypto platforms. He warned investors about possible scams and pitfalls and cited the market as a cause for concern for the country’s macroeconomic stability. Other lawmakers in the country have also raised concerns about the possibility of misusing cryptocurrencies to launder money or even fund terrorism.
Even so, more and more Indians are getting on the crypto train and a number of Bollywood actors have been promoting crypto in the past few months.
The Indian government has been reviewing cryptocurrency banning legislation and aims to find anyone trading in the country or holding these types of assets. However, starting with the meeting with the Indian Prime Minister, the government also plans to be more aggressive on measures related to cryptocurrencies. The move is a departure from efforts to limit the use of cryptocurrencies. In addition, a senior Indian politician said the country would enact new laws to welcome innovations around blockchain.
Chainalysis announced that India ranks second in the global crypto adoption index and the crypto market has grown 641% over the past year. According to local news, the meeting was aimed at addressing issues related to cryptocurrencies and there was some discussion of how to prevent misleading advertising from misleading young investors. Government sources said:
“We feel that efforts to mislead young people with over-promising and opaque advertising have stopped.”
RBI Governor Shaktikanta Das and Chairman of the Indian Securities and Exchange Council Ajay Tyagi also attended the meeting. During the meeting, there was agreement that unregulated cryptocurrency markets cannot become major hubs for money laundering and terrorist financing. The government also plans to keep a close eye on cryptocurrencies and developing technology. Officials agreed that the government will take further steps in the crypto industry and consider global partnerships and strategies as crypto problems also emerge outside of India.