NEW DELHI: Prime Minister Narendra Modi today chaired a high-level meeting on cryptocurrencies and other related issues and indications are that the government is seriously looking at formulating a long term policy to regulate the digital currency. 

Reportedly in today's meeting which was an outcome of a consultative process by the Reserve Bank of India (RBI), the Finance Ministry and the Securities and Exchange Board of India (SEBI) the discussion focused on the fact that, unlike countries like China which has totally banned the digital currencies India may need to adopt an accommodative stance considering the widespread penetration.

The RBI, Finance Ministry and Home Ministry had already done an elaborate exercise on what could be done towards framing a policy and has consulted experts from across the country and the world and global examples and best practices were also looked at, sources said.

During the meeting, it was strongly felt that attempts to mislead the youth through over-promising and non-transparent advertising should be stopped. Besides, it was also discussed that unregulated crypto markets cannot be allowed to become avenues for money laundering and terror financing, the sources said. 

The government was cognizant of the fact that this was an evolving technology and would keep a close watch and take proactive steps. There was also a consensus in the meeting that the steps taken in this field by the government should be progressive and forward-looking, the sources added. 

"Since the issue cuts across individual countries’ borders, it was felt that it will also require global partnerships and collective strategies,” the sources said, adding that the government would continue to engage proactively with experts and other stakeholders on the issue. 

As a nation, El Salvador has already become the first country to use bitcoin as legal tender and Panama is considering following El Salvador’s lead.