Budget 2018: 'Crypto currency not a valid currency,' says jaitley
Finance Minister Arun Jaitley said government does not consider crypto currency as a valid currency and will take measures to discourage use of cryptocurrency in promoting illegitimate activities.
Techies, fintech experts, even the common man with an investment in this volatile offering might be disappointed with clarity on the government's stance on cryptocurrencies.
Cryptocurrencies has made millionaires, even billionaires of the people who invested in in its early years, but the economy regulatory bodies of India are still weary.
Govt does not consider cypto currency as a valid currency and will take measures to discourage use of crypto currency in promoting illegitimate activities. #NewIndiaBudget— RSPrasad Office (@OfficeOfRSP) February 1, 2018
On February 1, 2017, the Reserve Bank had reminded the users of risk involved in bitcoin trading. "The Reserve Bank of India advises that it has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency. As such, any user, holder, investor, trader, etc. dealing with Virtual Currencies will be doing so at their own risk," said RBI in the released.
Later, on December 5, 2017, the RBI reiterated its warnings in wake of significant spurt in the valuation of bitcoins. "Attention of members of the public is drawn cautioning users, holders and traders of Virtual Currencies (VCs) including Bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs," said the RBI.