Addressing a G20 meeting, Shah said: said That the risks associated with crypto and metaverse are as serious as cases of dynamite explosions or hawala. He said that the type of security threats has changed and it is a matter of serious concern. “The old threats to our security are changing. It is from the explosion of Dynite to metaverse and quote to cryptocurrency. This is a matter of concern for all countries. A common strategy has to be created to deal with this. Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das were also present in this meeting.
By the end of this year Crypto India can make some progress on global laws for the segment. Late last year, the RBI warned that the next financial crisis would come from private cryptocurrencies. RBI had demanded a ban on cryptocurrencies. It believes that there is no value associated with cryptocurrencies and it is a risk to macroeconomic and financial stability. Even before this, there has been a demand from the RBI to ban crypto.
The RBI had issued a circular about cryptocurrencies four years ago prohibiting entities under its regulations from dealing in such instruments. However, after this, the Supreme Court rejected this circular of RBI. The regulatory position regarding cryptocurrencies in the country is not clear. Inputs are also being taken from the World Bank and the International Monetary Fund (IMF) for the consultation paper being prepared by the government on cryptocurrencies. The decline in cryptocurrencies has weakened the financial position of many firms in this segment and they have had to take measures like layoffs to reduce their costs.