The government today said that it is cognizant of the emergence of the technologies related to Web 3 and Blockchain and has been taking steps to create awareness and the ecosystem building around Web 3. Replying to a question in Lok Sabha today, Union Finance Minister Nirmala Sitharaman said Crypto Assets sector and Web3 sector are relatively new and still evolving.

She noted that these sectors are borderless and require significant international collaboration for any specific legislation to be fully effective. The Minister said the RBI has been cautioning users, holders and traders that dealing with Virtual Currencies is associated with potential economic, financial, operational, legal, customer protection and security related risks.