On February 1, India’s finance minister Arun Jaitley tabled the Union Budget for 2018-2019, in which he described plans for Indian economy and touched on the issue of cryptocurrency. According to the Budget Speech, the Government of India “does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassetsin financing illegitimate activities or as part of the payment system”.

The finance minister’s statement on cryptocurrency has received wide publicity in print and electronic media. Many have concluded that the Government of India prohibits people from using Bitcoin as well as other digital currencies. However, Arun Jaitley’s words can be also interpreted as just a recommendation based on reasonable intention to prevent the use of cryptocurrencies in illegal activities and tax evasion.

Despite the tightening control on cryptocurrency transactions, Arun Jaitley stated that the Government would “explore use of blockchain technology proactively for ushering in digital economy.”