Menu

Search

  |   Digital Currency

Menu

  |   Digital Currency

Search

Indian Finance Ministry cautions against digital currencies

Following the South Korean government’s recent efforts to curb speculation in cryptocurrency trading, the Indian government has also issued a warning on digital currencies.

The Ministry of Finance today issued a statement urging people to become aware of the risks involved when engaging in the digital currency space.

The finance ministry believes the recent spurt in the price of digital currencies such as bitcoin is being driven only by speculation and underscored the risk of an investment bubble. It said that digital currencies “don’t have any intrinsic value and are not backed by any kind of assets” and added that they are not legal tender.

“Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes. VCs are stored in digital/electronic format, making them vulnerable to hacking, loss of password, malware attack etc. which may also result in permanent loss of money. As transactions of VCs are encrypted they are also likely being used to carry out illegal/subversive activities, such as, terror-funding, smuggling, drug trafficking and other money-laundering Acts,” the statement reads.

Noting the past warnings issued by the Reserve Bank of India, the ministry said:

“The Government or Reserve Bank of India has not authorised any VCs as a medium of exchange. Further, the Government or any other regulator in India has not given license to any agency for working as exchange or any other kind of intermediary for any VC. Persons dealing in them must consider these facts and beware of the risks involved in dealing in VCs.”

“The Government also makes it clear that VCs are not legal tender and such VCs do not have any regulatory permission or protection in India. The investors and other participants therefore deal with these VCs entirely at their risk and should best avoid participating therein."

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

November 16 16:00 UTC Released

USKC Fed Manufacturing

Actual

24 Mln

Forecast

Previous

5 Mln

November 16 16:00 UTC Released

USKC Fed Composite Index

Actual

15 Bln USD

Forecast

Previous

8 Bln USD

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 429097429097m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 429097429097m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 417277417277m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.