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  • Modi stated that the challenges of cryptocurrency cannot be faced by countries acting alone.
  • Modi introduced a bill last year that would ban all crypto activities, which has since been modified to allow for crypto to be held as an asset.
  • If the bill passes, India and China would face restricted crypto activities.

India’s prime minister Narendra Modi recently called for global action on crypto at the World Economic Forum in Davos, Switzerland.

Modi introduced a bill last year which would ban all crypto activities. It has since been modified to allow for crypto to be held as an asset, but not for payments.

China has previously imposed restrictions on crypto activities and Pakistan recently announced it is looking at possible limitations.

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During his remarks at the World Economic Forum meetings in Switzerland, India Prime Minister Narendra Modi called for global action to address the risks associated with cryptocurrency activities. Modi sees the challenge of crypto similar to that of climate change in that it cannot be addressed by countries acting alone.

In making his point, Modi stated, “Cryptocurrency is an example of the kind of challenges we are facing as a global family with a changing global order.” While one could challenge whether crypto is truly a global challenge akin to climate change, Modi’s point is indicative of the concern many governments have and the steps they are willing to take to address the perceived risks to their domestic markets.

Last year, Modi introduced a bill which would have imposed an outright ban on crypto activities. The “Cryptocurrency and Regulation of Official Digital Currency Bill,” as it is known, has since been modified to allow for crypto to be held as an asset, but not for payments. If the legislation passes, the two most populous planets in the world, India and China, would have restricted crypto activities.

Pakistan also announced recently that they are looking at possible restrictions of crypto activities. It’s important to point out that many major countries, such as the US, have yet to develop a clear regulatory framework. Other countries, such as Canada and the UK, have clarified certain aspects relating to crypto (eg, registration requirement for crypto companies), but have other areas that are yet to be addressed.

Further developments of this topic can be expected in the near future.