Sitharaman Pitches a Global Framework to Prevent Cryptocurrencies Laundering

Key Takeaways:

  • Money laundering and terror financing have been called major threats to the cryptocurrency industry by India.
  • Union Finance Minister Nirmala Sitharaman indicated on Monday, April 18, that the major issue about cryptocurrency is its possible use for money laundering and terror financing, adding to the uncertainty in India’s cryptocurrency business.

India has proposed a global framework to regulate cryptocurrency, citing money laundering and terror financing as major threats. The finance minister spoke at an International Monetary Fund (IMF) conference on “Money at a Crossroads” in Washington, DC.

Union Finance Minister Nirmala Sitharaman indicated on Monday, April 18, that the major issue about cryptocurrency is its possible use for money laundering and terror financing, adding to the uncertainty in India’s cryptocurrency business. 

“The most significant risk for all countries would be the aspect of money laundering and such monies being used to sponsor terror,” Sitharaman said in a statement.

In her speech, Sitharaman highlighted India’s digital performance and the government’s efforts to build a digital infrastructure framework over the last decade, noting the increase in digital adoption in India during the COVID-19 pandemic. 

Image From The Meet
Image From the Meet

“According to 2019 projections, India’s digital adoption rate is over 85%. However, it was only roughly 64% globally that year. So the pandemic period allowed us to test and demonstrate to ourselves that it is simple to use, that regular people can use it, and that adoption is demonstrated “Sitharaman stated unequivocally.

Nirmala Sitharaman has stated that a Cabinet note on the subject is being written. She also stated that crypto-asset taxation will be implemented initially. As announced in Budget 2022, the Reserve Bank of India is working on the creation of India’s digital currency.

“Of course, the Supreme Court has commented on cryptocurrency and while the RBI may take a call on the official cryptocurrency, from our end, we are very clear that we are not shutting off all options,” she said.

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Baisakhi Mishra