Money Laundering, Terror Financing is the Biggest Risk Of Crypto: FM Sitharaman 

The biggest risk of cryptocurrencies, according to Union Minister of Finance Nirmala Sitharaman, might be money laundering and its use to finance terrorism in the midst of the pioneering fintech revolution (local time).

“I think the biggest concern for all countries across the board will be the money laundering element as well as the issue of currency being used for financing terror,” Ms Sitharaman said at a session during the ongoing spring meeting of the International Monetary Fund (IMF).

“I believe that technology-based regulation is the best way to go. Regulation based on technology will have to be so proficient that it is not only ahead of the curve, but also on top of it. And that’s not going to happen. If any country believes it is capable of handling it. It has to be done on a broad scale “According to the Minister.

The Union Minister arrived in Washington this morning for an official visit to the World Bank’s Spring Meetings, the G20 Finance Ministers Meeting, and the Central Bank Governors Meeting (FMCBG).

The Finance Minister took part in a high-level panel discussion on “Money at a Crossroad” sponsored by Kristalina Georgieva, IMF Managing Director, on the first day of the visit.

“We’re at a fork in the road as to how fast, how far, and in what proportion,” the IMF chief said in her opening remarks, “but I regard this as a one-way path in which Digital Money will play a larger role.”

Ms Sitharaman praised India’s digital performance and the government’s efforts to develop a digital infrastructure framework over the previous decade, emphasizing the country’s increased digital usage rate during the Covid-19 outbreak.

“According to 2019 estimates, India’s digital adoption rate is around 85%. However, globally, it was only around 64% in the same year. So the pandemic period allowed us to test and prove for ourselves that it is simple to use, that it can be used by ordinary people, and that adoption can be proven “Ms Sitharaman was adamant.

Sitharaman attended an event at the Atlantic Council, a think tank in Washington, DC, on Monday in addition to her formal engagements with the World Bank, IMF, G20, and Financial Action Task Force (FATF).

According to a Ministry of Finance announcement, the visit would involve bilateral interactions with Indonesia, South Korea, Sri Lanka, and South Africa, as well as a high-level meeting with World Bank President David Malpass.

Notably, after the meetings in Washington, Ms Sitharaman will go to San Francisco on April 24, where she will meet with business leaders and connect with Stanford University academics and students. On April 27, she will fly to India.