Misinterpreted Speech Leads To Bitcoin Selloff

Even something as minor as a misinterpretation of a government official’s speech is enough to spark a Bitcoin selloff these days.

India’s finance minister Arun Jaitley spoke to parliament on February 1, and he referred to cryptocurrency as an “illegitimate activities”  and promised a government crackdown, according to Coin Telegraph.

Jaitley said, “The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system.”

His comments were misinterpreted as an outright ban on crypto in India, which caused Bitcoin to fall below $9,226 on Thursday amid the uncertainty.

India’s leading Bitcoin company, Unicoin, tweeted that the announcement did not revise the government’s cryptocurrency stance.

Bitcoin interest in India remains high since the country reformed its currency. As for the government’s official policy on crypto, despite some warnings against it, nothing is formalized after two years of sporadic attempts.

Despite the misinterpretation of Jaitley’s statements, at this time, the government of India made no change in its policy regarding cryptocurrencies, which could mean a quick rebound in prices today.