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Arun Jaitley: Cryptocurrency not recognised as legal by the Government

Finance Minister of India, Mr. Arun Jaitley stated that the Indian government does not recognise the cryptocurrency as legal tender. The statement came in time when bitcoin before declining 20 percent touched its record high at USD 11,434.
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Finance Minister of India, Mr. Arun Jaitley stated that the Indian government does not recognise the cryptocurrency as legal tender. The statement came in time when bitcoin before declining 20 percent touched its record high at USD 11,434.

On being asked that whether the Indian government has taken a decision on the status of the bitcoin, Jaitley said that as of now government does not recognize the cryptocurrencies as the legal money to deal in, however, the work is being going on the recommendations in this regard.

Jaitley has already addressed the Parliament that in India there no regulations governing virtual currencies including bitcoins and that no licence or approval has been given by the RBI to any entity for operation of any such currency.

He further stated that the Department of Economic Affairs (DEA) has constituted a committee including representatives from DEA, Department of financial services, Ministry of Home Affairs, RBI, Niti Aayog and SBI. The committee has been constituted in light of cognizance of the rising regulatory challenges as well as concerns with the increasing use of virtual currencies.

The report has been submitted by the committee which is being examined at present.

Recently, the cyber criminals in cryptocurrency have demanded about USD 300 as a fee for unlocking devices affected by the bitcoin as the bitcoins have a ransomware attack globally which systems of about 100 countries.

Bitcoin has recently announced the launch of bitbox introducing a marketplace in India for purchase of bitcoins.

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Reviewed by:
Mehak Sharma
Published on 1st Dec, 2017
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