Finance Minister Nirmala Sitharaman reiterated the government’s stance on cryptocurrencies during a session at the India Today Conclave 2024, emphasizing that they cannot be considered as currencies.
Responding to inquiries about a potential reevaluation of the government’s position given the recent surge in cryptocurrency activity, she clarified that the government has consistently maintained that crypto assets are suitable for trading, investment, and various other purposes, but not as legitimate currencies.
She added, “We haven’t regulated them then, and we haven’t regulated them now. But they cannot be currencies and that’s the Government of India’s position.”
Nirmala Sitharaman emphasized the necessity of regulating cryptocurrencies during a discussion at the G20 forum. She pointed out that while currencies are typically issued by governments or central banks, cryptocurrencies remain unregulated in India. Sitharaman underscored the importance of addressing this issue due to the significant impact of technology-driven currencies on cross-border payments.
She further warned against the potential misuse of unregulated cryptocurrencies, such as facilitating money laundering, funding illicit activities like drug trafficking and terrorism, and enabling easy round-tripping of funds.
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