India’s approach toward cryptocurrencies has evolved over time, going from being virtually outlawed to being reinstated by the court, which termed the curbs as illegal.
The federal ministerial body will examine a cryptocurrency law with regard to national security, said the BJP vice and chairman of the parliamentary standing finance committee Jayant Sinha.
“We have to be very watchful about what happens to these crypto assets and cryptocurrencies,” Mr Sinha said Wednesday. “Use of these kinds of crypto instruments in terror financing and for domestic security threats is something we have to be mindful of.”
At an event organized by the Internet and Mobile Association of India, he ruled out replicating advanced economies in virtual currencies because India does not yet have full capital account convertibility.
India’s approach to cryptocurrencies has evolved over time from practically ostracized to being reinstated by the court ruling the curbs illegal, with Sinha’s comments coming a day after a former central banker said the cryptocurrencies were cryptocurrencies must be treated and governed as an asset or commodity according to the applicable stock exchange laws.
“Our solution will have to be distinct and unique simply because of our unique circumstances,” Mr Sinha said. “We have to balance stability and growth but we recognize how important this whole area of crypto is.”
