With virtual currency gaining traction among investors, Finance Minister Arun Jaitley on Thursday said that India does not recognise crypto currency as a legal tender.
Yesterday, virtual currency bitcoin touched a record high of $11,434, before declining 20 per cent.
“Recommendations are being worked at. The government’s position is clear, we don’t recognise this as legal currency as of now,” Jaitley said when asked whether the government has taken any decision on crypto currency.
Earlier in August, Jaitley had informed Parliament that there are no regulations governing virtual currencies, including bitcoins, in India and the RBI has not given any licence to any entity/company to operate such currencies.
He had further said that taking cognisance of concerns raised at various fora from time to time on increasing use of virtual currencies (VCs) and the regulatory challenges, the Department of Economic Affairs (DEA) constituted a committee with representations from DEA, Department of Financial Services (DFS), Ministry of Home Affairs (MHA), RBI, Niti Aayog and SBI.
The committee has submitted its report and it is being examined.
Ironically, one thing that shows the confused state of government in which Arun Jaitley holds the profile of finance minister is that government itself is on verge of launching a crypto currency in line of bitcoin called Lakshmi Coin, to be launched by RBI.
While, just last week, BillDesk, which is India’s largest payment solution provider, had launched India’s first crypto-currency exchange called Coinome that plans to support 20 mainstream crypto-currencies including bitcoin in India, by 2018.
Going forward in same line, bitcoin exchange start-up BitBox announced introduction of the advanced marketplace for buying bitcoins in India. The exchange provides access to high liquidity order book for BTC/INR pair which allows an individual to buy or sell bitcoins instantly.