Indian Finance Minister Speech Misinterpreted by Media, Bitcoin Falls

Following the speech of Arun Jaitley, cryptocurrency markets went into a panic mode, thus causing Bitcoin value to drop to below $9,512. However, it appears that some of the media reports have got it all wrong! As Indian Finance Minister Speech got misinterpreted by media, we look into what really happened today.

1 February, AtoZForex Bitcoin’ value has dropped significantly due to the regulatory remarks coming from India Finance minister Arun Jaitley. Mr. Jaitley has given a speech in regards to the governmental budget in the Parliament today.

Indian Finance Minister Speech Misinterpreted by Media, Bitcoin Falls

During his speech, Mr. Jaitley has mentioned that cryptocurrency is not legal tender in the country. He also has promised a crackdown on “illegitimate activities” that are associated with crypto. Following his speech, a flow of misinterpreted comments has appeared in media. Some media reports were even suggesting that Mr. Jaitley has proposed an outright ban on cryptocurrencies.

This triggered a reaction in markets, with Bitcoin dropping below $9,512.

India has been sending mixed signals in relation to the regulation of cryptocurrencies in the course of the past two years. Since Indian currency reforms, interest in Bitcoin has spiked, while the local exchanges have been reporting fast growth.

At the same moment, the central bank of India has been issuing a number of warnings on cryptocurrency investment. Some of the warning has been referring to the cryptocurrency as illegal.

India Blockchain Stance

During his speech, Mr. Jaitley has stated:

“The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”

In fact, during his speech, he did not say anything exact about banning the cryptocurrency market as a whole. However, some media has claimed that India Bitcoin ban was imminent.

In the meantime, market insiders have been drawing a completely different picture. For instance, cryptocurrency exchange Unocoin has stated that there was no change in the government stance since the budget speech. It has added:

“It is business-as-usual.”

Mr. Jaitley also appeared quite positive in regards to Blockchain technology in his speech:

“The government will explore use of blockchain technology proactively for ushering in the digital economy,” he mentioned.

The comments came in line with the previous government plans.

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