Warning for ‘young’ crypto users in India: PM Modi

In his first public comments on crypto currencies, Prime Minister Narendra Modi on Thursday warned that bitcoin presents a risk to younger generations as his government prepares to introduce legislation to regulate digital currencies.

The Prime Minister’s caution comes days after he held discussions on how to move forward on cryptocurrency in India, with concerns raised on unregulated crypto markets becoming avenues for money laundering and terror financing.

Speaking at the Sydney Dialogue, a forum on emerging, critical and cybertechnologies, PM Modi framed virtual money, which is highly popular in India and exists beyond state and central bank control, as a domain that needs to be closely policed.

“Take cryptocurrency or bitcoin, for example,” the Prime Minister told a forum hosted by the Australian Strategic Policy Institute. “It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youths.”

The Centre is considering a regulatory framework to manage and oversee investments made in cryptocurrency.

Earlier a report said that the government could bar the use of cryptocurrencies for transactions or making payments, but could allow them to be held as assets like gold, shares or bonds.

Critics of cryptocurrencies allege that largely anonymous unregulated transfers make them a perfect tool for drug traffickers, people smugglers or money laundering.

Several nations have begun to legislate to introduce oversight over cryptocurrencies, and exchanges in many jurisdictions are now subject to the same regulations as other financial service providers.

India effectively outlawed crypto transactions in 2018, only for the country’s top court to strike down the ban two years later.

That led to a boom in the sector as the country’s vast young population took heed of an advertising blitz by Bollywood and cricket stars.

Today, more than 100 million Indians have embraced virtual currencies, ranking the country behind only the United States, Russia and Nigeria in terms of users, according to a report last month by investment portal BrokerChooser.

Take crypto-currency or bitcoin for example.

It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth: PM @narendramodi

— PMO India (@PMOIndia) November 18, 2021

There have been growing calls for India to issue another ban, but Modi’s government appears set to stop short, preferring instead strict legislation that could be passed before the end of the year.

Reserve Bank of India’s Shaktikanta Das has been sharply critical, saying last week that cryptocurrencies are a serious threat to the financial system if not properly regulated.

At the same time the central bank is looking at issuing its own official digital currency.

More broadly, PM Modi used his address to tout India as a global technology hub. His “Digital India” scheme aims to modernise and harness technology across the subcontinent of 1.3 billion people.

PM Modi said emerging technologies like quantum computing offer great opportunities.

But, he said, it was “essential for democracies to work together” to “invest together in research and development in future technology”.

He added that it was also necessary for democracies to “deepen intelligence and operational cooperation on cyber security.”

Crypto Users Reaction:

Critics have accused PM Modi — who was elected on an often divisive Hindu nationalist platform — of harnessing technology to silence opponents.

“The Modi government has been using technology since it came to power in 2014 to curtail rights at home as part of an escalating crackdown on freedom of expression, association and peaceful assembly,” said Human Rights Watch Australia director Elaine Pearson.

“The Modi government has been using technology since it came to power in 2014 to curtail rights at home as part of an escalating crackdown on freedom of expression, association and peaceful assembly,” said Human Rights Watch Australia director Elaine Pearson.

This guy have any idea what cryptocurrency is?? Earlier this govt termed crypto as illegal now they want to interfere into it.

— Anugrah Pateriya (@_k_s__h__m_r_) November 18, 2021

Definitely someone is controlling the whole process, hope this is not type of financial terrorism/war

— Shilpa Shetty (@shilpashetty110) November 18, 2021

If internet cannot be controlled, neither can Crypto Currency.
It's in a Blockchain system and very much out of the Slimy Govt. hands, it's controlled by the sender & receiver – peer to peer…it must be regulated as an Asset-Class and Taxed at the point of conversion into cash.

— Ranaji Ganguly° (@ranajig) November 18, 2021

Your govt do not wants people of India live their life happily by keeping cash in hands. Your govt wants all should deposit in bank n crypto then Ambani n Adani can loot n enjoy it easily. What Anil Ambani did with the banks, declared himself insolvent n enjoying all his property

— REKHA SINGALA (@RekhaSingala) November 18, 2021

It is invented to fall in THOSE hands. THOSE refers to the arms dealers specifically.

— Dr. Naveen Nindania (@DocNaveenKumar) November 18, 2021

Crypto is purchased in dollar or Euro or GBP. We will end up depleting Forex reserves in buying fake virtual currency which is neither regulated nor guaranteed.
INR will weaken further.
The only countries to benefit from crypto are the US & European countries.
It's a trap Sir.

— The vaccinated being (@slient_killr) November 18, 2021

You can control the money flow in that bucket but cant control who uses that funds & thats inevitable.

— Manthan (@learnersdigest) November 18, 2021

It can't be on wrong hands, as there is no any hand to own it. its a database distributed equally. yes like some smuggle Sovereign currency can do this too. like we can't trace cash, we can't trace this too. bt its a technology not currency, so take it that way. Its good

— Ben Arm… (@gwaliorprince) November 18, 2021

“The Modi government has been using technology since it came to power in 2014 to curtail rights at home as part of an escalating crackdown on freedom of expression, association and peaceful assembly,” said Human Rights Watch Australia director Elaine Pearson.

This guy have any idea what cryptocurrency is?? Earlier this govt termed crypto as illegal now they want to interfere into it.

— Anugrah Pateriya (@_k_s__h__m_r_) November 18, 2021

Definitely someone is controlling the whole process, hope this is not type of financial terrorism/war

— Shilpa Shetty (@shilpashetty110) November 18, 2021

If internet cannot be controlled, neither can Crypto Currency.
It's in a Blockchain system and very much out of the Slimy Govt. hands, it's controlled by the sender & receiver – peer to peer…it must be regulated as an Asset-Class and Taxed at the point of conversion into cash.

— Ranaji Ganguly° (@ranajig) November 18, 2021

Your govt do not wants people of India live their life happily by keeping cash in hands. Your govt wants all should deposit in bank n crypto then Ambani n Adani can loot n enjoy it easily. What Anil Ambani did with the banks, declared himself insolvent n enjoying all his property

— REKHA SINGALA (@RekhaSingala) November 18, 2021

It is invented to fall in THOSE hands. THOSE refers to the arms dealers specifically.

— Dr. Naveen Nindania (@DocNaveenKumar) November 18, 2021

Crypto is purchased in dollar or Euro or GBP. We will end up depleting Forex reserves in buying fake virtual currency which is neither regulated nor guaranteed.
INR will weaken further.
The only countries to benefit from crypto are the US & European countries.
It's a trap Sir.

— The vaccinated being (@slient_killr) November 18, 2021

You can control the money flow in that bucket but cant control who uses that funds & thats inevitable.

— Manthan (@learnersdigest) November 18, 2021

It can't be on wrong hands, as there is no any hand to own it. its a database distributed equally. yes like some smuggle Sovereign currency can do this too. like we can't trace cash, we can't trace this too. bt its a technology not currency, so take it that way. Its good

— Ben Arm… (@gwaliorprince) November 18, 2021

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