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Cryptocurrency’s Used for “Money Laundering and Terror Financing”

Quick take:

  • Nirmala Sitharaman said that the biggest risk around cryptocurrency is its possibility to be used for money laundering and terror financing.
  • She added that regulation using technology is the only solution.

The uncertain cryptocurrency market in India has been cast further into doubt with speculations by the Union Finance Minister Nirmala Sitharaman. On Monday, April 18, she addressed that “the biggest risk around cryptocurrency is its possibility for money laundering and terror financing.”

She was speaking at a conference of the International Monetary Fund.

Minister feels that regulation is the only solution

She addressed that "Regulation using technology is the only answer. Regulation using technology will have to be so adept that it has to be not behind the curve, but be sure that it is on the top of it. And that's not possible if any one country thinks that it can handle it. It has to be across the board."

She also spoke about India’s efforts to build the digital infrastructure and India’s performance in the digital world. She also stressed the increased digital adoption rate during the pandemic.

She also added that the 30% crypto tax and 1% TDS are an effort to track the transactions and also track who made the transactions.

"How can we keep a trail following these transactions which were happening. After all, these were electronic codes eventually. So we wanted to be sure. So through that (30% tax), we will be able to know who's buying and who is selling it," Sitharaman said.

Sitharaman is officially visiting the US to attend the spring meetings of IMF and the world bank. She will also be a part of the G20 finance minister and central bank meeting.

The information provided on DecentReviews does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Do not treat any of the websites content as such. DecentReviews does not recommend that any cryptocurrency or blockchain asset should be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any investment decisions.

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