Despite the frequent attempts made by the Indian Government to limit and caution the customers against cryptocurrencies, Bitcoin has successfully penetrated the financial market of India. The cryptocurrencies have registered an upward graph in Indian market and has gained a dedicated share of investors. On February 1, 2018, Finance Minister Arun Jaitley, during his budget presentation, announced- “The government does not consider cryptocurrencies as legal tender or coin, and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities.” The noticeable point is the fact that the Finance Minister never declared the cryptocurrencies illegal. He didn’t even use the word illegal. But somehow, the investors across nation were filled with fear and scepticism. Such positive speech by the finance minister surprisingly swept the market with blunt feelings. There is no reason to be alarmed or make rash decisions. Let us take a step back and look at the bigger picture again. Let us analyse what Mr. Arun Jaitely actually conveyed and what it means for investors.

Did something changed after the Budget speech?
No. A big bold NO
The stance emphasized by the Finance Minister, Mr. Arun Jaitely is same as it has always been. Since the inception of cryptocurrencies, they were never recognised as legal tender by the government of India.
Now the next statement is the key to whole confusion. So read carefully.
If cryptocurrencies are not recognised as legal tenders it does not mean that the cryptocurrencies are illegal. In simple words, you cannot use cryptocurrencies in place of India Rupees. In other words, the government does not permit the use of cryptocurrency when you go to market to buy vegetables.
The second part of the announcement comes from the past experiences that Indian government had with cryptocurrencies. And unfortunately, they were all bad experience for the government. In the past whenever Government has come across cryptocurrencies, they were all used for illicit or illegal activities. And, obviously, the government could not trace the culprits or the sponsors of such activities. Hence, with such instances in their experience, it looks justified that the government want to stop the use of cryptocurrency in any illegal activity. This means anyone not using Bitcoins for illegal purpose or activity need not to worry. They are not doing anything wrong or illegal.

What does it exactly mean?
In simple terms, Cryptocurrency’s status is same as it was before the budget speech. No new legislation or regulation which can limit/penalise/ban the income earned through trade in Cryptocurrency means everything is same as earlier. No change. Cryptocurrencies are still unregulated as they were in past.
What does this mean for Investors?
There is no change in status. Investors who have invested or people who are planning to invest in cryptocurrencies need to rest assured that everything is same and safe. The investment is as secured as it was before the budget. Anyone can still invest and expect return without a pinch of fear. The income earned through the trade of cryptocurrency is not illegal and more importantly it is seen as legitimate taxable income. So do not worry.
So to put it in simplified terms, you can trade in cryptocurrencies but not use it buy vegetables or any other commodity in market.

The investors need to relax and not get worried by rumours surrounding the cryptocurrencies. Do not pay attention to the circus arranged by media. They are only sensationalising the matter. They are only shouting because they have no show. The cryptocurrency is still safe as it was before the budget. We at Buybitcoin supports Indian government’s vision to curb the use of cryptocurrencies in illegal activities and we request you also to support the Indian Government.