Bitcoin trading graph in exchanges including Zebpay, Unocoin, Coinsecure and BTCXIndia saw a steep southward turn on Friday following the Budget speech of finance minister Arun Jaitley mentioning cryptocurrencies weren’t legal tender.
A Bitcoin holder in Mumbai said, “It was after the finance minister’s speech that I went back and checked the fine print on one of the exchanges… Basically, even before accepting the money, the exchanges are clarifying that if the government comes after them, customers may lose their money.”
He added that investors need to contend with Indian income tax department to define the gains made from such cryptocurrencies or even when losses are faced against other income.
It is yet not known how much the gainers need to pay to the government as tax after selling the cryptocurrencies.
It is also a fact those investors who entered late to the segment have mostly made losses.
Malav Virani, a partner at law firm MDP & Partners, said it is not yet clear whether the government will declare cryptocurrencies as 100% illegal and it is also not believed the virtual currency will be completely banned in India.
Meanwhile, it is also true that a Dutchman Didi Taihuttu sold his luxury four-bedroom house for buying Bitcoin and Ethereum from the money and is now living in a tiny cabin in the southeastern Netherlands with his wife and three children.
The 39-year-old believes blockchain and cryptocurrency are revolutionizing the monetary system and he is responding to the change now.