Indian Prime Minister Modi Tells President Biden’s Summit: Cryptocurrency Should Be Used to Empower Democracy

Indian Prime Minister Modi Tells President Biden's Summit: Cryptocurrency Should Be Used to Empower Democracy

India’s Prime Minister Narendra Modi talked about cryptocurrency at a recent Summit for Democracy hosted by U.S. President Joe Biden. He called for global collaboration on cryptocurrencies “so that they are used to empower democracy, not to undermine it.”

Prime Minister Narendra Modi Talks About Crypto at President Joe Biden’s Summit for Democracy

President Joe Biden hosted a two-day virtual “Summit for Democracy” on Dec. 9-10. The conference “brought together leaders from government, civil society, and the private sector in our shared effort to set forth an affirmative agenda for democratic renewal and to tackle the greatest threats faced by democracies today through collective action,” the U.S. Department of State described.

Indian Prime Minister Narendra Modi said at the summit Friday that emerging technologies, such as cryptocurrencies, should be used to empower democracy. He stressed:

We must … jointly shape global norms for emerging technologies like social media and cryptocurrencies so that they are used to empower democracy, not to undermine it.

The Indian government is currently working on cryptocurrency legislation. A crypto bill has been listed for consideration in Lok Sabha, the lower house of India’s parliament. Reports suggest that the government is planning to regulate crypto assets but ban the use of cryptocurrency for payments. A deadline will also be set for investors to declare their crypto holdings.

Prime Minister Modi will reportedly take a final decision on how cryptocurrency will be regulated in India. A high-level meeting was held Thursday to consider all options including “a complete ban on private cryptocurrencies, a partial ban, allowing all categories of crypto products with regulation, or just a select few with regulation.”

Do you agree with Indian Prime Minister Modi about cryptocurrency? Let us know in the comments section below.

Indian Prime Minister Narendra Modi to Take Final Decision on Cryptocurrency Regulation

Indian Prime Minister Narendra Modi to Take Final Decision on Cryptocurrency Regulation

A high-level meeting is reportedly being held on cryptocurrency regulation in India and Prime Minister Narendra Modi will take a final decision on how India will regulate the crypto sector. All options are being discussed including full and partial regulation as well as a complete ban and a partial ban.

Indian Crypto Regulation to Be Decided by Prime Minister Modi

Indian Prime Minister Narendra Modi will take a final decision on the country’s cryptocurrency regulation, the Economic Times reported Friday, citing two people familiar with the development.

A high-level meeting was held Thursday to consider all options of how India should regulate the crypto sector, the publication noted, adding:

The options include a complete ban on private cryptocurrencies, a partial ban, allowing all categories of crypto products with regulation, or just a select few with regulation.

Issues discussed in the meeting included stakeholder views and concerns raised by the country’s central bank. The Reserve Bank of India (RBI) has said on several occasions that it has “serious” and “major” concerns regarding cryptocurrency.

The Indian government has listed a bill titled “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” to be taken up in the current session of Lok Sabha, the lower house of India’s parliament.

Last week, Indian Finance Minister Nirmala Sitharaman answered some questions regarding the cryptocurrency bill and the government’s plan for the crypto sector. She confirmed that the bill had been reworked from the original version that seeks to categorically ban cryptocurrencies.

Reports then surfaced that the Indian government is planning to regulate crypto assets, like bitcoin, with the Securities and Exchange Board of India (SEBI) as the main regulator. However, other reports indicate that the government seeks to ban the use of crypto for payments and will set a deadline for investors to declare their crypto holdings. The bill will also set universal know-your-customer (KYC) rules for crypto exchanges.

The publication added that the finance minister has finalized the draft note on the proposed cryptocurrency bill.

However, the government felt that some sections of the bill need more detailed discussions, particularly “the principles underlying the bill” and the broad details of how cryptocurrencies should be treated in India, the news outlet conveyed. One person noted that “discussions are likely to focus on various options and pros and cons of adopting them,” elaborating:

PM will now take a final call on these.

In November, Prime Minister Modi chaired a high-level meeting on crypto regulation with participation from the finance ministry and the RBI. He also urged all democratic countries to collaborate to ensure that cryptocurrencies, particularly bitcoin, do not fall into the wrong hands.

On Friday, the prime minister said at a virtual summit hosted by U.S. President Joe Biden that emerging technologies, including cryptocurrencies. should be used to empower democracy, not undermine it.

What do you think Prime Minister Narendra Modi will decide about India’s crypto regulation? Let us know in the comments section below.

Japan to Propose Restricting Stablecoin Issuers to Banks and Wire Transfer Companies

Japan to Propose Restricting Stablecoin Issuers to Banks and Wire Transfer Companies

Japan’s top financial regulator, the Financial Services Agency (FSA), is reportedly planning to propose legislation to restrict stablecoin issuance to banks and wire transfer companies. Crypto service providers involved in stablecoin transactions, including wallets, will also be brought under the financial regulator’s oversight.

Japan to Tighten Stablecoin Regulation

Japan’s Financial Services Agency (FSA) is planning to tighten the regulation of stablecoins by imposing strict rules on their issuers, Nikkei reported Monday, stating:

The Financial Services Agency seeks to propose legislation in 2022 to restrict issuance of stablecoins to banks and wire transfer companies.

The FSA will also tighten regulations related to the prevention of money laundering, the publication added, noting that crypto service providers involved in stablecoin transactions, including wallets, will also be brought under the financial regulator’s oversight.

In addition, stablecoin issuers will be required to comply with Japan’s law on preventing transfers of criminal proceeds. This includes verifying user identities and reporting suspicious transactions.

The total market capitalization of all stablecoins at the time of writing is nearly $160 billion. Tether (USDT), the biggest stablecoin in circulation, currently has a market cap of $76.58 billion based on data from Bitcoin.com Markets.

While Japan currently does not have a law regulating stablecoins, the FSA has established a panel to study how to best ensure consumer protection and address money laundering concerns in this area. In September, Yuri Okina, a member of the panel, said: “It’s important that stable coin is backed by secure, liquid assets. But it’s questionable whether setting blanket rules as strong as those currently applied to banks is the right approach.”

Japan is not the only country planning to impose strict rules on stablecoin issuers. In July, Treasury Secretary Janet Yellen asked regulators overseeing crypto assets in the U.S. to “act quickly” to regulate stablecoins. The President’s Working Group on Financial Markets (PWG) subsequently recommended imposing bank-like regulation on stablecoin issuers.

However, not everyone agrees with this regulatory approach. In November, Federal Reserve Board Governor Christopher Waller argued against the PWG’s recommendation. He explained that he is fine with letting banks issue stablecoins but disagrees that only banks should be allowed to issue them.

What do you think about Japan planning to allow only banks and wire transfer companies to issue stablecoins? Let us know in the comments section below.