At parliamentary meet on cryptocurrency, worries over security of investors' money come to the fore

The Parliamentary Standing Committee on Finance met with industry associations and experts to discuss matters of crypto finance on November 15. The committee was led by Bharatiya Janata Party MP and former union minister Jayant Sinha.

At the meet, all parties concluded that cryptocurrency cannot be stopped, but must be regulated, news agency ANI reported citing sources.

There was reportedly a consensus that a regulatory mechanism should be put in place to regulate cryptocurrency. However, industry associations and stakeholders were not clear as to who should be the regulator.

"It's important to balance innovation and regulation, highlights the need to 1. Ensure Investor Protection 2. Maintain Fiscal Stability 3. Ensure Adherence to FEMA and 4. Ensure cryptos aren't used for illicit finances," CNBC-TV18 quoted Chairman of Parliamentary Panel on Finance Jayant Sinha as saying.

Also read: Cryptocurrency Bill: Govt working on definition, tax treatment; cabinet nod to be sought soon

One of the primary concerns that were expressed by MPs at the meet was about the security of investors’ money. One parliamentarian also expressed concern over full-page crypto advertisements in national dailies.

Experts, on the other hand, opined that cryptocurrency is a sort of investors’ democracy.

The members of the Parliamentary Standing Committee have now asked government officials to appear before it and address the concerns that were raised.

Although this is the first meeting convened by a parliamentary panel to discuss the future of crypto, a similar meeting was chaired last week by Prime Minister Narendra Modi. At the review meeting with stakeholders, it was decided that advertisements by crypto companies, exchanges, and other entities which over-promise and are not transparent need to stop.