Guwahati: PM Modi says digital currencies being used to fund terror.

Digital currencies need more regulation to stamp out funding for terror operations, India’s Prime Minister Narendra Modi said on November 18, at a major international forum. It is in a bid to combat financing of extremist groups.

He further told delegates at the conference on Countering Financing of Terrorism that “private currencies” posed a grave security risk.

Modi said, “New kinds of technology are being used for terror funding and recruitment. Challenges from the dark net, private currencies and more are emerging.

There is a need for a uniform understanding for new finance technologies. From a uniform understanding, a unified system of checks and balances and regulation can emerge.”

Cryptocurrencies have been under the scrutiny o0f Indian regulators since it entered the local market nearly a decade ago.

The Supreme Court of India lifted the restrictions two years later. Hereafter, the market surged, growing by nearly 650 percent in the current year.

The government also proposed banning "all private cryptocurrencies", but ultimately held back and later taxed profits from "private currencies" at 30 percent.

Globally, the crypto market has been thrown into upheaval by this month's collapse of FTX, a major exchange used for digital transactions.

Once valued at $32 billion, FTX filed for bankruptcy last week.

Its downfall sent major cryptocurrencies plunging and further undermined investor confidence in the young and turbulent sector.

ALSO READ : Zomato co-founder quits company making third big exit in two weeks