Centre may regulate cryptocurrency over terror funding fears: Sources

In view of the risks posed by the digital currency, the finance ministry is mulling imposing regulations on cryptocurrency, sources said.

A cryptocurrency is essentially a digital currency which is available on block-chain technology.

The finance ministry is considering regulations on cryptocurrency, sources told India Today. The development comes amid continued questions over financial instability and the risks of digital assets.

Sources said that most countries see cryptocurrency as a source of terror funding and money laundering.

On the sidelines of G20 meeting, India held discussions with other bilateral partners and international organisations on global regulation of private cryptocurrencies, sources said.

The dialogue over regulation on cryptocurrency is likely to intensify in the coming months.

“Cryptocurrencies are, by definition, borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” Finance Minister Nirmala Sitharaman had said earlier.

ALSO READ | Why RBI wants ban on cryptocurrencies

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