Finance Ministry in 'serious' discussions on crypto regulations: Sources

The finance ministry is currently in "serious" discussions on regulations related to cryptocurrency, sources told Business Today on Wednesday.

"There is no denial that most countries see crypto as a source of terror funding and money laundering," they added.

In line with the G20 meeting held in July, sources also said that discussions with other bilateral partners and international organisations on global regulations for cryptocurrency are required.

Hope this will intensify in the coming months, people familiar with the development further said.

Recently, Union finance minister Nirmala Sitharaman stated that a new cryptocurrency regulation would soon be introduced and urged investors to act with prudence while dealing with cryptocurrencies.

She has been arguing forcefully for international regulation of cryptocurrencies to combat money laundering and terrorism funding concerns.

In August, the Enforcement Directorate (ED) has conducted raids on many crypto companies in connection with alleged money laundering and other violations.

Currently, the government doesn't recognise cryptocurrencies, but it does impose a hefty (30 per cent) tax on revenue derived from the virtual digital assets.