Government doesn’t recognise bitcoin as legal: FM Arun Jaitley

NEW DELHI: With virtual currency gaining traction among investors, Finance Minister Arun Jaitley today said India does not recognise cryptocurrency as legal tender.

Yesterday, virtual currency Bitcoin touched a record high of $11,434, before declining 20%.

“Recommendations are being worked at. The government’s position is clear, we don’t recognise this as legal currency as of now,” Jaitley said when asked whether the government has taken any decision on the cryptocurrency.

Earlier in August, Jaitley had informed Parliament there are no regulations governing virtual currencies, including bitcoins, 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.