Indian Government Seeks to Eliminate Use of Crypto-assets in the Country

Gwen Vasquez
February 2, 2018

"The finance minister's vision to evaluate the block chain technology while clarifying Govt of India's stand on cryptocurrency is a great example of not throwing the baby out with the bath water", said Arvind Chandrasekhar, WW Government Affairs Lead, AMD.

Investors have now been picking apart Jaitley's language to decipher whether India has finally decided on the legality of cryptocurrencies. "However, the government will look at the utilisation of blockchain", Jaitley said in his Budget speech in Parliament, adding that the technology can help further boost the Digital India campaign.

This announcement from Jaitley comes after months of speculation over the future of cryptocurrencies in India.

Jaitley said, however, that the Indian government was interested in the potential of blockchain - the technology that underpins cryptocurrencies. His announcements are aimed at regulating the country's cryptocurrency market but it is not as expected by many prior to the commencement of Budget 2018.

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"The Finance Minster in his budget speech has again confirmed that the government does not recognise cryptocurrency and will take all steps to stop its usage and circulation".

Bipin Preet Singh, Co-founder of e-wallet MobiKwik, reacted that "the government should consider regulating crypto currencies than curbing their use entirely".

However, Monish states that this is a "wait and watch situation", to understand the final framework of such legislation, if such legislation is introduced. Because of the increase in the value of Bitcoin, there is a craze among people. "Any such apps using the JioCoin name are fake and people are advised to refrain from dealing with any of them", the operator said.

Cryptocurrencies are not regulated in India, the second-largest country in the world by population after China. Hence the Government has begun a crackdown on illegal uses of unregulated currency. The absence of which would result in innocent consumers being cheated and those who are trying to do this as per book would also risk their capital and investment. One of the key apprehensions has been that these cryptocurrencies could dent the government's efforts against the black money. Facebook announced a ban on cryptocurrency ads this week.

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