Crypto used to finance terrorism: Modi

NEW DELHI: Digital currencies need more regulation to stamp out funding for terrorist operations, Indian Prime Minister Narendra Modi said on Friday at a major international forum to combat the funding of extremist groups.

Globally, the crypto market was thrown into turmoil by the collapse this month of FTX, a major exchange used for digital transactions. Once valued at $32 billion, FTX filed for bankruptcy last week.

India has struggled to rein in cryptocurrency trading after years of phenomenal growth, buoyed by booming local trading platforms and glitzy celebrity endorsements.

Modi last year said Bitcoin posed a risk to younger generations and could “spoil our youth” if it ends up “in the wrong hands”.

On Friday, he went further and told delegates at the Counter Terrorist Financing Conference that “private currencies” pose a serious security risk.

“New types of technologies are being used for the financing and recruitment of terrorism. Dark net, private currencies and other challenges are emerging,” he said, stressing the need for a uniform understanding of new financial technologies.

“From a uniform understanding, a unified system of checks and balances and regulation can emerge,” he said.

Delegates from dozens of countries are in the capital New Delhi for the two-day conference, which follows a special session of the UN Counter-Terrorism Committee held in India last month.

Cryptocurrencies have been under the scrutiny of Indian regulators since they first entered the local market nearly a decade ago.

Posted in Dawn, November 19, 2022

#Crypto #finance #terrorism #Modi #Crypto

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