ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • LIC IPO
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Bitbns
  • Marksmen 2022
  • More ...
    • VIDEOS
    • PHOTOS
    • MARKSMEN 2022
BREAKING NEWS
  • Foreign portfolio investors dump Indian equities worth over Rs 35,000 crore in May so far on US Fed rate hike & dollar appreciat
  • Central excise duty cut on petrol, diesel: Check new rates in your city effective today
  • GST Council mulling to modify monthly tax payment form for better input tax credit reporting
  • Punjab National Bank earns over Rs 645 crore through ATM transaction charges in FY22
  • Tata Motors expects domestic passenger vehicle industry to surpass FY19 volumes this fiscal
Read in App
Business News » India News

Bitcoin not a legal tender in India, says Finance Minister Arun Jaitley

The Finance Minister of India has openly refuted the acceptance of Bitcoin as legal tender in India.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bitcoin not a legal tender in India, says Finance Minister Arun Jaitley
Union Finance Minister Arun Jaitley addresses at International Forum on Role of Rural and Agricultural Finance. Image Source: IANS
Key Highlights:
  • Jaitley said 11 cryptocurrency exchanges have been identified.
  • RBI also cautioned against dealings in Bitcoin.
  • Value of the Bitcoin crossed $19,000 in December last year. 

Finance Minister Arun Jaitley, speaking in Parliament which is currently in session, on Tuesday disproved of the acceptance of Bitcoin as legal currency in India.

Bitcoin is not a legal tender in India, Jaitley said adding to previous disapprovals by the country’s Central bank that have agreed on the same.

Jaitley added that 11 cryptocurrency exchanges have been identified in India and the government will not take knee-jerk decisions on crypto currencies, as per Bloomberg alerts.

The government panel is also awaiting a report on tackling cryptocurrencies in India, Jaitley said.

सुनिए Bitcoin पर वित्त मंत्री अरुण जेटली का बड़ा बयान | https://t.co/3VU0GumbVx pic.twitter.com/AVAgERZbsU

— Zee Business (@ZeeBusiness) January 2, 2018

The Reserve Bank of India (RBI) has also cautioned from time to time about the risks of dealing with Bitcoin.

Bitcoin are a cryptocurrency with a worldwide payment system which is decentralised. This implies that the currency operates separate from the currency of the central bank of any country or a single administrator.

Through its press release dated December 24, 2013 and February 1, 2017 and once again on December 5, 2017, the RBI reiterated caution of dealing with Bitcoin.

“Attention of members of public is drawn to the Press Release issued by the Reserve Bank of India (RBI) on December 24, 2013, 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,” RBI said.

Value of the Bitcoin crossed $19,000 in December last year. As of today, January 2, 2018, the value of the Bitcoin converted to Indian National Rupees by Google is stated as Rs 8,51,073.40.

In reply to a question tabled in Lok Sabha on December 29, Ministry of Finance had this to say about Bitcoin dealings in India. “The Department of Economic Affairs had constituted an Inter-disciplinary committee to examine the existing global regulatory and legal structures governing Bitcoin; to take stock of the present status of Bitcoin both in India and globally; suggest the frame work for regulation of Bitcoin if among others etc. The committee has submitted its report which is under consideration of the Government.”

The risks outlined by RBI in its December 2013 release read as follows:

1. VCs being in digital form are stored in digital/electronic media that are called electronic wallets. Therefore, they are prone to losses arising out of hacking, loss of password, compromise of access credentials, malware attack etc. Since they are not created by or traded through any authorised central registry or agency, the loss of the e-wallet could result in the permanent loss of the VCs held in them.

2. Payments by VCs, such as Bitcoins, take place on a peer-to-peer basis without an authorised central agency which regulates such payments. As such, there is no established framework for recourse to customer problems / disputes / charge backs etc.

3. There is no underlying or backing of any asset for VCs. As such, their value seems to be a matter of speculation. Huge volatility in the value of VCs has been noticed in the recent past. Thus, the users are exposed to potential losses on account of such volatility in value.

4. It is reported that VCs, such as Bitcoins, are being traded on exchange platforms set up in various jurisdictions whose legal status is also unclear. Hence, the traders of VCs on such platforms are exposed to legal as well as financial risks.

5. There have been several media reports of the usage of VCs, including Bitcoins, for illicit and illegal activities in several jurisdictions. The absence of information of counterparties in such peer-to-peer anonymous/ pseudonymous systems could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws.

WATCH:

Also Read:
  • How to pay tax on bitcoin profit?
  • Will Bitcoin be another “Bubble” tale?

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
BitcoinArun JaitleyFinance MinisterMinistry of FinanceRBIBitcoin risksBitcoin valueEconomy
Written By: ZeeBiz WebTeam
Updated: Tue, Jan 02, 2018
05:46 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
No proposal to recognise Bitcoin as a currency: Finance Minister No proposal to recognise Bitcoin as a currency: Finance Minister
Cryptocurrency Latest News INR Price Today June 25: Bitcoin, Ethereum lead rally as market recover; Dogecoin gains nearly 17% —Check how Shiba Inu and other top coins fared Cryptocurrency Latest News INR Price Today June 25: Bitcoin, Ethereum lead rally as market recover; Dogecoin gains nearly 17% —Check how Shiba Inu and other top coins fared
Cryptocurrencies Latest INR Price News June 24 2021: Bitcoin still in RED, Ethereum co-founder Charles Hoskinson comment on Dogecoin and rates of top coins TODAY— check all DETAILS here Cryptocurrencies Latest INR Price News June 24 2021: Bitcoin still in RED, Ethereum co-founder Charles Hoskinson comment on Dogecoin and rates of top coins TODAY— check all DETAILS here
Bitcoin rallies after dropping below $30,000 on China crackdown Bitcoin rallies after dropping below $30,000 on China crackdown
Cryptocurrency Latest Price News Today: 'Death Cross'! Bitcoin, Ethereum, Dogecoin and other top coins continue to tumble; Check possible factors  Cryptocurrency Latest Price News Today: 'Death Cross'! Bitcoin, Ethereum, Dogecoin and other top coins continue to tumble; Check possible factors

LATEST NEWS

Central excise duty cut on petrol, diesel: Check new rates in your city effective today

Sun Pharma recalls over 10,000 bottles of generic anti-depression drug in US amid customer complaint

Australia ousts conservatives after nine years, PM Morrison concedes

Punjab National Bank earns over Rs 645 crore through ATM transaction charges in FY22

Mutual Funds collect Rs 1.08 lakh cr via 176 new fund offerings in FY22 on retail investors' interest

Tata Motors expects domestic passenger vehicle industry to surpass FY19 volumes this fiscal

Auto sector in focus: Commercial and private vehicles to drive growth this fiscal, 2-wheelers, tractors to remain sluggish – Report

Government cautions public about ongoing frauds on mobile tower installation; says DoT/TRAI not involved, doesn’t issue NoC

Government cuts excise duty on petrol by Rs 8/litre, diesel by Rs 6/litre, urges all states to follow suit & give relief to common man

'Live In Present' - Essel Group Chairman Dr Subhash Chandra gives success mantras to Mount Litera graduating students

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV