Bitcoin markets respond to new regulatory commentary by India's Finance Minister Arun Jaitley during his last speech to Parliament today. After Jaitley noted in his speech that cryptocurrency does not have legal tender in the country and promised a crackdown on "illegitimate activities" involving crypto, a stream of misinterpreted comments warning of a ban pure and simple appeared through the mainstream.

Markets in turn fell on Thursday as Bitcoin plummeted below $ 9,512 after breaking $ 10,300 on Wednesday, Jan. 31, data from Bitstamp shows.

India has been sporadic in its attempts to formalize the regulation of cryptocurrency over the past two years. Since the country's monetary reforms, interest in Bitcoin has skyrocketed, with local stock markets recording tremendous growth.

At the same time, the Indian central bank issued repeated warnings on cryptocurrency investments.

In his budget speech, Jaitley stated:

"The government does not recognize cryptocurrency as legal tender and will take all necessary measures to eliminate the Using these cryptoassets "

While Jaitley's speech obviously evaded any mention of the legality of crypto per se, comments from third parties and leading journalists controversial Prohibition was imminent.

"Arun Jaitley has just killed the cryptocurrency party of India, " The Quartz article on the subject He proclaims, citing a lawyer who is waiting for "a legislative mechanism or … an appropriate modification of the existing legislation to ensure that the trade and negotiation of cryptocurrency are illegal and penalize the entities and individuals involved in their trade and their circulation. "

On Twitter, the curious reading of Jaitley's words continued, with statements of Bitcoin " illegal " and soon " eliminated ".

Cryptocurrencies are illegal. Because they can not be traced. Does this apply to currencies such as:

– Bitcoin.

– old Rs. 500.

– Electoral obligations? # Budget2018 – Sorabh Pant (@hankypanty) February 1, 2018

Bitcoin to banish. Crypto illegal currency in India says @arunjaitley

#Bitcoin #DigitalCurrency # budget2018 – Anjana Om Kashyap (@anjanaomkashyap) February 1, 2018

From inside the industry however, sources have said quite another story. Crypto Unocoin Exchange summarized that there had been "no change" from the government's perspective since the Budget Speech

"This is the business-as-usual, " he added in his most recent Twitter activity.

According to the announcement # UnionBudget2018, there is no change in the government's position regarding #cryptocurrency. It is business-as-usual at @Unocoin # Budget2018 pic.twitter.com/YGUFOlfhCj – Unocoin (@Unocoin) February 1, 2018

Correspondent Cointelegraph Joseph Young also posted on his personal Twitter on the FUD in the main media surrounding the comments of the Minister of Finance:

In what universe does it look like a ban? The Indian Finance Minister said that he would eliminate the use of cryptocurrencies like bitcoin in "criminal use cases". The mainstream media have considered it as "it will eliminate the use of cryptocurrency" and have forgotten the rest. pic.twitter.com/IXRwHSqZTo – Joseph Young (@iamjosephyoung) February 1, 2018

India on Blockchain

Consistent with previous government initiatives, Jaitley did not produce any surprises with his commitment to expand the use of blockchain technology at the state level in the future.

"Government to proactively explore the use of blockchain technology to usher in the digital economy"