Arun Jaitley: Trading in Bitcoin, Ethereum is illegal
Arun Jaitley says those indulging in such transactions are doing it at their own risk
Arun Jaitley emphasised that the Centres consistent position was that such currencie's were not legal tender. PIC/PTI
Bitcoins or such crypto-currencies are not legal tender and those indulging in such transactions are doing it at their own risk, Finance Minister Arun Jaitley said yesterday as MPs expressed concern over trading on these platforms.During the Question Hour in Rajya Sabha, DMK member Kanimozhi sought to know whether the government was considering regulating crypto-currencies like Bitcoin and Ethereum, as India "accounts for more than 11 per cent" of such trade globally.
Jaitley emphasised that the Centre's consistent position was that such currencies were not legal tender. "The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to crypto-currencies to propose specific actions to be taken," he said.
In a bid to clean up election funding, Finance Minister Arun Jaitley yesterday came out with contours of new 'electoral bonds' that can be bought from specified branches of SBI and used to donate money to political parties. The bearer instrument will not carry the name of the payee and can be bought for any value, in multiples of Rs1,000, Rs10,000, Rs1 lakh, Rs10 lakh or Rs1 crore, he said in a statement in the Lok Sabha.
Although called a bond, they will be interest-free debt instruments that resemble promissory notes where the SBI will be the custodian of the donor's funds until the political parties are paid.