Government does not keep track of crypto startups that leave the country: Government to Parliment

The government does not keep track of crypto startups that leave the country, said Minister of State for Commerce and Industry Som Parkash in Parliament on Friday (July 22).

He was responding to a question from a Member of Parliament seeking clarification on the country’s exodus of crypto startups. According to the MoS, the RBI has expressed concern about the ‘adverse effect’ of cryptocurrency on the country’s economy. “…the value of cryptocurrencies is solely based on speculations and expectations of high returns that are not well anchored, so it will have a destabilising effect on a country’s monetary and fiscal stability,” Parkash responded. The MoS also cited a slew of RBI circulars and orders that, he claimed, warned users and traders about cryptocurrencies’ “potential economic, financial, operational, legal, customer protection, and security risks.”