[03-02-2018] Bitcoins losing currency on Budget warning

[Krishniche]

Trading on Bitcoin exchanges surged on Thursday and Friday after finance minister Arun Jaitley said in his February 1 Budget speech that cryptocurrencies weren't legal tender. Exchange servers were said to have ground to a near halt on both days due to the sudden spurt in transactions, although the platforms themselves said things had settled down after the initial panic.

Zebpay, Unocoin, Coinsecure and BTCXIndia all saw large transaction volumes. Mumbai resident Rahul Ray was one of those who sold his Bitcoin holding on Friday morning. "It was after the finance minister's speech that I went back and checked the fine print on one of the exchanges," he said. "Basically, even before accepting the money, the exchanges are clarifying that if the government comes after them, customers may lose their money."

Read more at :
https://economictimes.indiatimes.com/markets/stocks/news/bitcoins-losing-currency-on-budget-warning/articleshow/62761940.cms

What's your take on this? Kindly share your views.

[onrise]

The warning does exists from 2013 that be cautious by RBI. What FM said in the speech was the same it is not a legal tender which was the same thing before budget as well. They have still not said it is completely banned and also said that they want the people who has earned from the bitcoin to pay the tax as indicated by the government. And still waiting the committee reports.

[jjacob]

While the Indian premium on Bitcoin may disappear after such warnings, it is unlikely that this will have an impact on global Bitcoin's price. India may have the second largest population in the world, but it is too small in the crypto market. You cannot expect governments which want high degrees of control to allow the proliferation of decentralized currencies.

[Krishniche]

The warning does exists from 2013 that be cautious by RBI. What FM said in the speech was the same it is not a legal tender which was the same thing before budget as well. They have still not said it is completely banned and also said that they want the people who has earned from the bitcoin to pay the tax as indicated by the government. And still waiting the committee reports.

I agree but someone misinterpreted this news as a result zebpay went haywire that day and widespread panic was observed in the community.