Indian ministry of finance keeping a close watch on crypto sector development

India’s Ministry of Finance recently published a press release where it talks about the 19th Meeting of the Financial Stability and Development Council (FSDC) attended by the prominent ministry members that deliberated on the crypto development, ban on crypto use among other finance related topics.

Deliberation on issues and challenges of Crypto Assets/Currency

In the latest document released by the Ministry of Finance, Financial Stability and Development Council (FSDC) deliberates about creating a framework for banning the use of cryptocurrencies and shifting the focus on distributed blockchain technology (DLT).

The press release states,

“19th Meeting of the Financial Stability and Development Council (FSDC) held under the Chairmanship of the Union Finance Minister, Shri Arun Jaitley reviewed the current global and domestic economic situation and financial sector performance; The Council decided that the Regulators and the Government would keep a close watch on the developing situation and take all necessary measures.”

The nineteenth meeting of the FSDC that was chaired by Union Minister of Finance and Corporate Affairs, Arun Jaitley discussed the current performance of the financial sector on both domestic and global level.

The meeting was attended by a number of members from prominent ministries viz. Dr. Urjit R. Patel, Governor of Reserve Bank of India (RBI); Dr. Hasmukh Adhia, Finance Secretary and Secretary, Department of Revenue; Shri Subhash Chandra Garg, Secretary, Department of Economic Affairs; Shri Rajiv Kumar, Secretary, Department of Financial Services; Shri Injeti Srinivas, Secretary, Ministry of Corporate Affairs; Shri Ajay Prakash Sawhney Secretary, Ministry of Electronics and Information Technology; Shri Ajay Tyagi, Chairman, Securities and Exchange Board of India; Shri Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India; Shri Hemant G. Contractor, Chairman, Pension Fund  Regulatory and Development Authority; Dr. M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India along with other senior officers of the Government of India and Financial Sector Regulators.

The press release states,

“The Council also deliberated on the issues and challenges of Crypto Assets/Currency and was briefed about the deliberations in the High-level Committee chaired by the Secretary (Economic Affairs) to devise an appropriate legal framework to ban use of private cryptocurrencies in India and encouraging the use of Distributed Ledger Technology, as announced in the Budget 2018-19.”

The council also noted the developments about strengthening of cybersecurity in the financial sector along with deliberating on the need for identifying and securing critical information infrastructure in the financial sector.

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