In a public caution on Friday, India’s finance ministry cautioned residents towards making an investment in digital currencies like bitcoin, likening them to ponzi schemes. India’s Ministry of Finance issued an announcement nowadays cautioning Indian citizens towards dangers investing in digital currencies such as Bitcoin, claiming they lack intrinsic value and aren’t backed by any property. Mere speculation is riding expenses of bitcoin and different digital currencies, the finance ministry stated.
An excerpt from the notice read:
“There’s an actual and heightened danger of investment bubble of the type seen in Ponzi schemes that may led to unexpected and extended crash exposing traders, particularly retail clients dropping their hard-earned money. Clients need to be alert and extraordinarily careful as to keep away from getting trapped in such Ponzi schemes.”
Digital currencies aren’t backed by authorities fiat cash and aren’t taken into consideration legal tender, the finance ministry noted, including that their transactions are encrypted and are consequently getting used for illegal activities including terror-funding, smuggling, drug trafficking and different money-laundering acts.
However, the ministry warned traders that they adopting or buying and selling digital currencies entirely at their danger because of a lack of customer safety. They have to keep away from taking part in digital currencies, the authority stated, leaving no illusion as to in, which it stands, on acknowledging decentralized digital currencies. The ministry additionally pointed to a few separate cautions by India’s central bank in 2013, February 2017 and December 2017 voicing comparable warnings to nowadays statement.
Repeated cautions aside, India’s bitcoin business remains unregulated by the authorities in spite of movements to analyze and develop a regulatory framework for digital currencies in India. Remaining month, India’s Supreme Court called on the authorities to get the ball rolling on developing a framework to regulate the flow of Bitcoin within the nation. Despite today’s warning, India’s finance ministry has not introduced a blanket ban on digital currency exchange nor has it introduced any curbs to place limitations at the adoption and exchange of digital currencies.