The current situation in India regarding digital currencies is nothing short of being a total mess designed to make everyone confused.
India’s finance minister, Mr. Arun Jaitley, while presenting the annual Budget for the country on 1st February, was scathing with respect to cryptocurrencies. According to him, the Indian government does not recognize digital currencies as a legal form of tender and would not hesitate to take any and every measure in order to stop its use in financial illegal and dangerous operations or allowing its use in the traditional payments system.
But even after these remarks, the Indian government has not declared cryptocurrencies to be illegal or prohibit their usage in the country. What adds to the utter mess is the fact that Mr. Jaitley’s post budget discussion with state-owned network Doordarshan, in which he says that, unless a government-appointed expert panel gives their final opinion on digital currencies, the government would discourage the people to use cryptocurrencies.
Many financial analysts in India feel that the government’s contradicting statements are adding more to the confusion. But, they are hopeful that the government would only form new regulations instead of completely banning cryptocurrencies in the country.
According to co-founder of an Indian cryptocurrency exchange, the government’s wariness towards cryptocurrencies is not at all a matter of surprise. He also said that the government’s tough stance is due to the fact that cryptocurrencies are decentralized and are not guaranteed by the government. Another executive of a cryptocurrency exchange said that they are following the minister’s comments with caution.
Cryptocurrencies have seen rough days recently, with Bitcoin falling under $9000 which in turn fuelled a selling frenzy.
Earlier in December 2017 the Income Tax Authority of India issued tax notices to investors who invested large sums of capital on cryptocurrencies. Few banks have also started implementing restrictions on accounts operated by cryptocurrency exchanges and even blocked some of their accounts and giving fuel to the fire of chaos.
Ultimately, it remains to be seen what the Indian government finally does with regards to cryptocurrencies. Till then, everyone is getting their mind twisted in this mess.
