Finance Minister of India Says Cryptocurrencies Are Not a Legal Tender

India

According to Arun Jaitley, India’s Finance Minister, the government of India does not recognize Bitcoin as a legal offer in the country. However, Jaitley did highlight that the government has taken recommendations for legalizing Bitcoin into consideration, and plans are being worked on by the government as we speak.

Based on Jaitley’s interview with the Economic Times, the Finance Minister has informed the Indian parliament that the Reserve Bank of India (the country’s main bank) has yet to roll out licenses to operate with cryptocurrencies within its realm. That said, he did state the Indian government is still looking at recommendations in regards to how to regulate the digital currencies.

“Recommendations are being worked at. The government’s position is clear, we don’t recognize this as legal currency as of now.”

Regulating Digital Currencies in India

Over the course of the past couple months, India has been working around the clock to control the use of cryptocurrencies.

Back in April, the Indian government created an interdisciplinary committee that was in charge of looking at the potential drafting of regulations that cover virtual currencies. However, in October, the Indian Supreme Court rolled out a notice to the RBI, pleading them to give an answer to the petition regarding the digital currency regulation issue.

Here’s what the petition stated:

“The lack of any concrete [control] mechanism pending the regulatory framework in said regard has left a lot of vacuum and which has resulted in total unaccountability and unregulated Bitcoin trading and transactions.”

The Takeaway

Until India can figure out how to regulate cryptocurrencies, Bitcoin and other digital currencies will continue to not be considered a legal offer in the country.

Featured Image: twitter

Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is working towards finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, consumer, technology, and politics.