India’s Prime Minister Narendra Modi stated on Friday at a significant international meeting to combat the financing of extremist organizations that digital currencies require tighter regulation to stop funding for terrorist operations.
This month’s failure of FTX, a significant exchange for digital transactions, has upended the cryptocurrency industry globally. FTX, which once had a $32 billion market cap, declared bankruptcy last week.
After seeing years of remarkable development, supported by booming local trading platforms and glittering celebrity sponsorships, India has struggled to control cryptocurrency transactions.
Last year, Modi warned that Bitcoin posed a danger to the next generation and may “spoil our youth” if it fell “into the wrong hands.”
Further, he warned that “private currencies” constituted a serious security danger to attendees of the Conference on Countering Financing of Terrorism on Friday.
“New technologies are being utilized to support and recruit terrorists. The necessity for a common understanding of new financial technologies was highlighted by the speaker as challenges from the dark net, private currencies, and more were arising.”
“A united system of checks and balances and regulation can arise from common knowledge,” he remarked.
The two-day conference, which follows a special meeting of the UN’s Counter-Terrorism Committee held in India, last month, is being attended by representatives from dozens of countries. It is being held in the capital city of New Delhi.
Indian officials have been keeping a close eye on cryptocurrencies since they first appeared on the domestic market about ten years ago.