It said that extrapolating meaning of an asset not being 'legal tender' as 'illegal' is irresponsible.
"The Blockchain and Cryptocurrency Committee (BACC) of IAMAI is happy that the finance minister has recognised the importance and popularity of cryptocurrency and has chosen to talk about it on budget day. As far as the exact content of what he said, we are neutral-to-positive about it. However, we are pained to see his words being misinterpreted and misreported," the Internet & Mobile Association of India (IAMAI) said in a statement.
"The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system," Jaitley said.
The IAMAI panel said that during the question hour in Rajya Sabha on January 2, 2018, the finance minister had made the exact same point, where he stated that, 'bitcoins or such cryptocurrencies are not legal tender' and this has been the position taken by almost all governments around the world.
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The rate of Bitcoin has seen high level of volatility. Last month, it was trading for over Rs 14 lakh a unit. The price has dropped significantly since then and is now trading below Rs 5 lakh a unit.
The panel appreciated the stance of the government and said it wants to wholeheartedly support the government in move to check use of cryptocurrency for illegitimate activities.
"Our members already maintain a no-compromise approach to KYC (know your customer) and AML (anti-money laundering) processes. We encourage the government to work with our members, as we are committed to detect, report, and eliminate suspicious transactions in pretty much the same way as other institutions do. This will also generate confidence in our banking partners," the statement said.
"When a platform as significant as the Union Budget speech mentions cryptocurrencies, it is clear that the sector is coming of age. We welcome this positive development, and see it as an important milestone in the journey to policy- clarity and consumer-education," the statement said.
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