The Standing Committee on Finance on Monday heard views of industry experts and associations on issues concerning 'crytofinance' and there was an understanding that cryptocurrency cannot be stopped but it must be regulated, sources said.
They said there was a consensus that a mechanism should be put in place to regulate cryptocurrency. However, the industry associations and stakeholders were not clear as to who should be the regulator, the sources said.
Security of investors' money was the most serious concern expressed by MPs at the meeting. Sources said an MP expressed concern over full-page crypto ads in national dailies and added that experts stated that cryptocurrencies are some sort of investors' democracy.
An MP told the meeting that El Salvador is the only country to recognize cryptocurrency as a legal tender. A member referred to an advertisement which claimed that "crores of Indians have invested over Rs 600,000 crore in crypto-assets".
The Standing Committee on Finance is headed by BJP MP Jayant Sinha. It heard views of associations and industry experts on 'CryptoFinance: Opportunities and Challenges'. Members of the committee now want government officials to appear before it and address their concerns.
Prime Minister Narendra Modi had on Saturday chaired a meeting on the way forward for cryptocurrency and related issues.
The comprehensive meeting was 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, sources had said.
The meeting had discussed that unregulated cryptocurrency market does not lead to "money laundering and terror financing". There was also consensus that the steps taken in this field by the government will be progressive and forward-looking. It was strongly felt that attempts to mislead the youth through over-promising and non-transparent advertising be stopped, sources had said.
( With inputs from ANI )
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