Cannot stop Cryptocurrency, but must be regulated: Finance Panel

New Delhi, Nov 15: At the meeting of the Parliamentary Standing Committee on Finance with industry associations and experts on the matter of crypto finance today, there was an understanding that cryptocurrency can't be stopped but it must be regulated.

"There was a consensus that a regulatory mechanism should be put in place to regulate cryptocurrency. Industry associations and stakeholders were not clear as to who should be the regulator," reported news ahency ANI quoting sources.

This comes days after Prime Minister Narendra Modi chaired a high-level meeting with officials from various ministries and RBI on the issue of cryptocurrency amid concerns.

The RBI has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them as well their claimed market value.

The Supreme Court in early March 2020 had nullified the RBI circular banning cryptocurrencies. Following this on February 5, 2021, the central bank had instituted an internal panel to suggest a model for the central bank's digital currency.

The RBI had announced its intent to come out with an official digital currency, in the face of proliferation of cryptocurrencies like Bitcoin about which the central bank has had many concerns.

Private digital currencies/virtual currencies/cryptocurrencies have gained popularity in the past one decade or so. Here, regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks.