Modi asks nations to ensure cryptocurrencies don't fall into wrong hands

Cryptocurrencies must not fall into the "wrong hands and spoil our youth", Prime Minister Narendra Modi told an international conference on Thursday, reiterating his government’s position earlier this week.

Modi was delivering the keynote address at The Sydney Dialogue, speaking about "India's technology evolution and revolution". The dialogue brings together political, business and government leaders to debate emerging technologies.

“Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth,” said Modi in a virtual address.

Last week, an India parliamentary panel favoured regulation rather than imposing an outright ban on the digital assets. 

The meeting took place against the backdrop of rising concerns in various quarters about crypto currencies and the possible risks emanating from trading in them, especially since there is a growing interest in such assets worldwide. Currently, there are neither specific regulations nor an outright ban on use of crypto currencies in the country.

In September, regulators in China banned all cryptocurrency transactions and mining of cryptocurrency.

Bitcoin, the world's biggest cryptocurrency, is hovering around the $60,000-level, having more than doubled its value since the start of this year, Reuters reported. India's digital currency market was worth $6.6 billion in May 2021, compared with $923 million in April 2020, according to blockchain data platform Chainalysis.