Trading in Bitcoin, Ethereum illegal, says Union Minister Arun Jaitley

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 on Tuesday 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 cryptocurrencies to propose specific actions to be taken," he said.

Also read: Government cautions against investing in Virtual Currencies; equates them to Ponzi Schemes

While a repeated message was being given  that such currencies were not legal tender, more detailed steps would be taken once the report of the committee is submitted, he said.

Also read: Cryptocurrency Bitcoin| Government cautions investors; warns of ponzi scheme like consequences

Independent member Amar Singh wanted to know what action was being taken in regard to the names which have figured in the Panama papers and Paradise papers, even as trading in bitcoins was also going on.

Jaitley said that the government was acting as per the law in these matters.