2018 Budget – Bitcoin Takes A Hit

Indian finance minister, Arun Jaitley during the budget session took a moment to talk about crypto-currencies. In his speech he mentioned that the use of crypto-currency as a method of payment is wrong and not considered as legal tenders which will result in its elimination. This speech brought in a heap of bad news to crypto-currency dealers and the most commonly used of them all, the Bitcoin took most of the hit.

The Finance Minister said “The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.”

However, the minister did not put much focus on the trading side of it which for now gives crypto-currencies like Bitcoin breathing room to recuperate. The shares of Bitcoin have taken a huge hit resulting in a drop of market value, but investors still believe that it will recover soon.

There are a number of coin exchanges in India – some prominent ones include Koinex, Zebpay, and Unocoin. For now, the reaction seems muted. “Nothing new was quoted by our Finance Minister in the budget announcement today. It was a repetition  of the same old cohort whilst the industry was expecting clarity over taxation and it’s regulation from the Government,” says Shivam Thakral, co-founder and CEO Delhi-based BuyUcoin. “The Government has vehemently mentioned to keep a control on the crypto market. Cryptocurrency and Bitcoin has garnered eye balls today as these have been mentioned in Indian budget for the first time. Industry is expecting clarity from the Government.”