India raised concerns over “money laundering” and “terror financing” to curb cryptocurrencies. Though it has not banned them outright like China, there is going to be ban on advertising Bitcoin.
Prime Minister Narendra Modi revealed the government’s thinking when he reportedly said, “attempts to mislead the youth through over-promising and non-transparent advertising should be stopped”.
Digital currency worth $6.6 billion is in circulation in India as per reports. A curb on advertising cryptocurrencies only indicates a desire by the government to control their further growth.
The Reserve Bank of India’s opposition to cryptocurrencies is well known. It was pushed back in its endeavour to curb cryptos when the Supreme Court in early March 2020 nullified the RBI circular banning cryptocurrencies.
RBI Governor Shaktikanta Das recently said cryptocurrencies are a serious threat to any financial system since they are unregulated by central banks.
A bill to regulate cryptocurrencies that stops short of an outright ban is scheduled to be taken up in the winter session of Parliament that starts this month, said reports.
Given the threat of curbing bitcoins in India, the roadmap for its growth in the country looks hazy.