Indian authorities warn investors to cryptocurrencies to Ponzi scheme

On the 29th Reuters said the Indian Ministry of Finance on Friday the risk of cryptocurrencies such as Bitcoin warned investors about digital currency investment as “Ponzi scheme.” In a statement, India’s Ministry of Finance said that the cryptocurrency is not a legal tender and there is no regulatory clearance or protection in the country. However, the Indian authorities have not directly announced a ban on cryptocurrencies trading or any restrictions.

The statement said investors and other participants in digital currency trading “risk entirely by themselves,” and suggested that people are best to avoid participating in such investments. India’s Ministry of Finance also warned that encrypted currency transactions could be exploited by illegal activities such as “terrorist financing, smuggling, drug trafficking and money laundering.” Indian authorities do not currently have any regulatory measures on cryptocurrencies. Last week, the Indian capital market regulator said it was negotiating with the government and central banks on how to regulate cryptocurrencies.

Reference: Reuters