As Union finance minister Arun Jaitley on Thursday said that the cryptocurrency is not legalized in our country and the government plans prevent using of digital currency as a mode of payment. After this announcement, the cryptocurrency started falling in Indian as well as global markets. "The government does not consider cryptocurrencies 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 told parliament in his budget speech. However, the minister said, the government would explore use of block chain technology proactively to speed the move toward a digital economy. Jaitley's announcement could trigger "panic selling" in cryptocurrencies in India, said Amit Maheshwari, partner at tax consultants Ashok Maheshwary & Associates, reported Reuters.
Cryptocurrency (Bitcoins) prices slide. Five Things To Know
1. Bitcoins prices fall 9% to trade at $9,338 on Coinmarketcap, pulling the market market capitalization to $156 billion.
2. A day before i.e. on January 30, the bitcoin's market cap was over $190 billion when the bitcoin prices were $11,300.
3. In the Indian bitcoin markets also, the prices fell to Rs 6.22 lakh while the cryptocurrency had hit a high of Rs 11 lakh in past. On Unocoin, the bitcoin prices had hit a high of Rs 6.7 lakh.
4. On the Luxembourg-based cryptocurrency exchange BitStamp, the bitcoin prices fell to a low of $9,051 while the digital currency hovered around $10,200 barely 24-hours ago, posting a fall of 11% in just one day.
5. Merely four days ago (on January 28), the bitcoin prices traded around $11,686, which means 29% higher than the bitcoin prices on Thursday.