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Union Finance Ministry cautions consumers about the risks of virtual currencies like Bitcoin

The ministry further clarified that the users, holders and traders of virtual currencies have been cautioned by the RBI notifying about the potential risks.

By: Express Web Desk | New Delhi | Updated: December 29, 2017 2:42 pm
union ministry cautions consumers about the risks of virtual currencies The ministry has said that these virtual currencies are not legal tenders even if they use terms like ‘coins’ to describe themselves.

The Finance Ministry on Friday cautioned consumers that the surge in prices of virtual currencies like Bitcoin is a matter of speculation and could lead to an investment bubble resulting in huge losses for investors. The ministry explained that these virtual currencies have no intrinsic value and are not backed by any assets which put investors at high risk of getting trapped into ponzi-like schemes that can cause sudden losses.

In a media release, the ministry said, “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 virtual currency. Persons dealing in them must consider these facts and beware of the risks involved in dealing in virtual currencies.”

The Union ministry has said these virtual currencies are not legal tenders even if they use terms like ‘coins’ to describe themselves. Since there is no physical attribute, it is neither a currency nor a coin.

The ministry further clarified that the users, holders and traders of virtual currencies have been cautioned by the RBI notifying about the potential financial, operational, legal, customer protection and security related risks virtual currencies can pose.

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  1. Bharadwaj Narasimha
    Dec 29, 2017 at 3:57 pm
    Bitcoin's are a classic speculation fraud. The tech industry is selling a pipe dream to gullible public wanting to make a fast buck. What is really happening is - - bitcoin/cryptocurrencies are the new hawala. plenty of bitcoin forums where you will find the conduits - on the physical asset translation side (which is happening in few western countries), the whopping majority is in drugs, and digital piracy. no one knows what proportion for sure (especially with such a volatile quantum and value in trade) but you dont have to be an Einstein to think it out - what exactly is bitcoin from a regulation perspective? is is a currency or a commodity? and then there is taxation. truth be told, this bitcoin bubble will crumble the moment few big countries come together to regulate it. those that have a basic knowledge of macro-economics understand the crucial role of central banks and monetary policy. the vast majority of people who are ding and transacting in this come from tech backg
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    1. Itisnot Right
      Dec 29, 2017 at 3:09 pm
      bitcoin is not much different than indian rupees.Our PM cancels notes anytime he wants,changes tax laws to benefit rich corporations,bans investment in gold-what will people do ?
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