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Cryptocurrency Is Not A Currency: Sitharaman Warns Entrepreneurs

Sitharaman said that the Enforcement Directorate (ED) has investigated cryptocurrency exchanges in connection with the money-laundering investigation

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Union Finance Minister Nirmala Sitharaman has warned crypto investors in an event organised by the BJP Economic Cell. The Finance Minister cautioned the public and entrepreneurs that cryptocurrency is not a currency.

During the program, she said that the government has already given a warning about this. We have to proceed with caution on cryptocurrencies. She also said that a new law on cryptocurrencies will be brought soon.

Sitharaman said that the Enforcement Directorate (ED) has investigated cryptocurrency exchanges in connection with the money-laundering investigation. In the meantime, the agency has also frozen assets of at least two cryptocurrency exchanges. The account freeze means that the company cannot do any transaction without the approval of the Enforcement Directorate.

The ED froze Wazirx's USD 8 million bank assets on August 5, and Vauld Crypto's bank accounts and approximately USD 46 million worth of crypto assets were frozen last week.

Nirmala Sitharaman said that the Reserve Bank of India (RBI) had suggested that the government make rules for cryptocurrencies. She said that the government will need international cooperation if cryptocurrencies are to be banned. She further said that we have to create uniform standards at the international level.


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