On 1st February 2018 the Government of India passed Union Budget . As the speech of Finance minister Mr jaitely started on cryptocurrency , which was much awaited in the cryptocurrency community, the thing totally changed.
Most of the journalists interpreted the speech wrongly . What the minister said was like a routine statement. He said the same thing what he had alreday said in the last month of December 2017. He said that the Indian government doesn’t recognize cryptocurrency as a legal tender.
The word legal tender is widely misinterpreted . Rumour spreded that the Government is going to Ban the cryptocurrency trading. It happened the same thing what has already been happen with South Korea . Market dipped down. The investor panicked and sold their holdings, the market crashed.
Union Budget 2018 on Bitcoin ban: What the Union Finance minister did actually said : –
“The government does not recognize cryptocurrency as a legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.The government will explore use of blockchain technology proactively for ushering in the digital economy.” Mr finance minister Arun Jaitely said.
— Satyam kirti (@satyam_kirti) February 1, 2018
— Bram (@BitcoinBram) February 1, 2018
Bitcoin Ban what experts say
“The government will now either come out with a legislative mechanism or make suitable amendment in existing legislation to ensure that dealing and trading in cryptocurrency is made illegal and to penalize entities and individuals who are involved in their trade and circulation,” said Monish Panda, founder of Monish Panda & Associates law firm. “We will have to wait and watch as to what will be the final framework of such legislation.” As quoted on Quartz India.
Union Budget 2018 on Bitcoin ban : Impact on market
The Central government of India passed its Union Budget 2018. Due to the wrong interpretation of the finance minister speech panic created in the market. Its here to note that the Indian traders are mostly young tech savvy people. In India since the institutional investor have not entered the market , almost ninety percent investors are retail investors.
where the market is in the hand of retail investors the rate of volatility increases. In case of India it happens the same.
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