Replicating advanced economies on virtual currencies is not an option, BJP MP Jayant Sinha said (File)
The federal ministerial panel will consider a proposed legislation on cryptocurrencies with national security in mind, BJP MP and chairman of the Parliamentary Standing Committee on Finance Jayant Sinha said.
"We have to be very watchful about what happens to these crypto assets and cryptocurrencies," Mr Sinha said Wednesday. "Use of these kinds of crypto instruments in terror financing and for domestic security threats is something we have to be mindful of."
Speaking at an event organised by the Internet and Mobile Association of India, he ruled out replicating advanced economies on virtual currencies as India still doesn't have a full capital account convertibility.
India's approach toward cryptocurrencies has evolved over time, going from being virtually outlawed to being reinstated by the court, which termed the curbs as illegal. Mr Sinha's comments come a day after a former central banker said cryptocurrencies should be treated as an asset or commodity and governed by existing laws for exchanges.
"Our solution will have to be distinct and unique simply because of our unique circumstances," Mr Sinha said. "We have to balance stability and growth but we recognize how important this whole area of crypto is."