Can't prevent misuse of Bitcoin by terrorists, Centre tells Rajya Sabha

New Delhi: There is no mechanism to prevent the misuse of crypto-currencies such as Bitcoin by terror groups and other anti-national elements, the government said on Tuesday, adding it was awaiting the report of an expert group on the subject. [caption id=“attachment_4268425” align=“alignleft” width=“380”] Representational image. Reuters[/caption] “One of the features of cryptocurrency is that there is lack of dependence on the state. It functions with a degree of anonymity. It operates within a virtual community which is created and enjoys the trust of that virtual community,” Finance Minister Arun Jaitley told the Rajya Sabha. “The government is examining the matter. A Committee under the chairmanship of the Economic Affairs Department Secretary is deliberating over all issues related to crypto-currencies to propose specific actions to be taken… Instead of taking any knee-jerk action, let’s wait for the report of this committee.” He said there were 785 different types of crypto-currencies operating worldwide. Jaitley also clarified that there were no legal safeguards for people dealing in crypto-currencies such as Bitcoin as it was not a “lawful legal tender”. “Since December 2013, the RBI and the government have consistently maintained that this (Bitcoin) is not a lawful legal tender in India. Therefore, no legal protection for the person dealing in it is available,” Jaitley said.