Union Budget 2018: Bitcoin, other cryptocurrencies not legal, govt to eliminate their use

Last year, finance minister Arun Jaitley had informed Parliament that there are no regulations governing virtual currencies in India.

Updated on: Feb 1, 2018, 13:12:14 IST

Press Trust of India, New Delhi | By HT Correspondent

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Finance minister Arun Jaitley on Thursday said all cryptocurrencies, which includes bitcoin, are illegal and the government will take measures to eliminate their use.

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. (Reuter File Photo)

“The government does not consider crypto currencies as legal tender or coin and (will) take all measures to eliminate the use of crypto assets...,” he said while presenting the Union Budget 2018-19 in the Lok Sabha.

Read highlights of the Union budget here

Last year, Jaitley had informed Parliament that there are no regulations governing virtual currencies 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.

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