Two days after Prime Minister Narendra Modi chaired a high-level review meeting in connection with crypto currency, the Parliamentary Standing Committee on Finance on Monday, 15 November, discussed the same with industry experts, association heads and stakeholders.
After listening to the stakeholders' views, majority of the members were of the opinion that the advent of digital currency is inevitable but it cannot go ahead without regulation, sources said.
The Parliamentary panel, headed by former Union Minister and BJP MP Jayant Sinha met to discuss 'Hearing of views of Associations/Industry experts on the subject 'Crypto Finance: Opportunities and Challenges.'
Over the last few years, even as scores of private establishments have offered it as an attractive investment option, hundreds and thousands of Indians have invested in the highly volatile crypto currencies, a market which is not yet regulated. Newspaper advertisements and enticing audio-visuals on television and OTT platforms are constantly streamed to capture newer markets. This has put common investors' money at high risk.
This is the first such meeting on the subject.
The discussion led to a consensus that there is a need to have a regulator and there is a need of a regulatory mechanism for the same. However, as this is an emerging field, there was no clarity as to who or which department should be regulating it, sources said.
"The government representatives have been asked to appear before the panel and address the concerns raised by the Parliamentary panel," the sources said.
On Saturday, when the Prime Minister chaired a high level meeting on the subject, two top concerns were flagged: over-promising and lack of transparency as this can lead to terror financing through money laundering.
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