Bitcoin has been a most talking subject in financial world in the last few years. Bitcoin now in India too has stirred up a sense of passion among Indians. In 2017 bitcoin has been a one of the most lucrative sources of income among some of the Indians.
GOVERNMENT STANCE: But, now it is on the radar of government of India. The government has recently warned the investors regarding the risks involved in trading with this. The government also cleared its view that it does not recognize it as a legal tender. It also warned regarding its volatile nature as well as legal risks involved in trading with this.
In a reply to a question asked in Lok Sabha, Finance Minister told about bitcoin dealing in India that “There has been a phenomenal increase in recent times in the price of virtual ‘currencies’ (VCs) including Bitcoin, in India and globally,” the Finance Ministry said in a statement on Friday. “VCs don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other VCs therefore is entirely a matter of mere speculation resulting in spurt and volatility in their prices.”
“There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money,” the statement added. “Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes.”
The finance ministry is not backing it up, but up to now it has not banned the cryptocurrencies in India.
According to a report in The Hindu Business Line, many investors are currently unable to trade on some of the bitcoin exchanges in India. They are facing problem to use their related bank accounts to withdraw or deposit money which they earned from trading.
Ajeet Khurana, who is known as the head of BACC has issued a statement saying that the recent “The recent knee-jerk actions taken by a few banks in terms of closing bank accounts of some of the cryptocurrency exchanges has led to hardship to these citizens.” He insisted that bank should follow the RBI stance and should try to understand this new emerging sector. They should consider the harmful effects of sudden knee-jerking strict reactions against this and after taking all these in consideration, they should decide their way of action. In the midst of all this, cracking down is in progress. According to a report that the registrar of company is now not registering cryptocurrencies exchanges.