Non-transparent advertising needs to stop, say govt sources after PM meet on cryptocurrency

Prime Minister Narendra Modi chaired a meeting on cryptocurrency with stakeholders on November 13.

The government 'strongly' feels that advertisements by cryptocurrency companies, exchanges and other such entities which over-promise and are not transparent need to stop, sources said after Prime Minister Narendra Modi chaired a meeting on cryptocurrency with stakeholders on November 13.

"Today’s meeting chaired by the PM on the way forward for cryptocurrency and related issues was a very comprehensive one," sources said. "It was strongly felt that attempts to mislead the youth through over-promising and non-transparent advertising be stopped," they said.

This meeting came at a time when the Finance Ministry is working towards introducing a comprehensive bill to regulate cryptocurrencies, investors and exchanges in the winter session of Parliament.

While private cryptocurrencies are unlikely to be allowed as legal tender, they may be allowed as assets which can be invested in, as Moneycontrol had reported earlier.

On November 15, the Parliamentary Standing Committee on Finance, headed by Lok Sabha MP Jayant Sinha, will also meet stakeholders from the digital currency ecosystem to seek their views.

The views expressed in the PM's meeting as well as those sought in the parliamentary panel sitting will influence the final draft law which will be tabled in Parliament.

Speaking on today's meeting, sources said that the Reserve Bank of India, Finance Ministry and Home Ministry had done an elaborate exercise on digital currencies as well as consulted experts from across the country and the world. Global examples and best practices were also looked at.

"It was also discussed that unregulated crypto markets cannot be let to become avenues for money laundering & terror financing. The Government is cognizant of the fact that this is an evolving technology hence the government will keep a close watch and take proactive steps," they said.

Sources said that the steps taken in this field by the government will be progressive and forward looking and that the Centre will continue to pro-actively engage with the experts and other stakeholders.

"Since the issue cuts across individual countries’ borders, it was felt that it will also require global partnerships and collective strategies," they said.