BREAKING NEWS

Metro

World

Spiritual

29 Dec 2017

Investors Warns Against Bitcoin, Ponzi Scheme and Others

India’s finance ministry on Friday cautioned investors about the risks of trading in cryptocurrencies such as bitcoin, saying digital currency investments are like “Ponzi schemes.”
The ministry in a statement said cryptocurrencies are not legal tender and have no regulatory permission or protection in the country.

The ministry, however, did not announce an outright ban or imposing any curbs.

The ministry added that investors and other participants dealing with such digital currencies are doing so “entirely at their risk and should best avoid participating therein.

“There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes”, with investors risking a sudden and prolonged crash.”

A Ponzi scheme is a swindle offering unusually high returns, with early investors paid off with money from later investors.

The ministry also cautioned that encrypted transactions in cryptocurrency were likely being used for illegal activities such as “terror-funding, smuggling, drug trafficking and other money laundering acts.”

India currently has no regulation for cryptocurrencies, and like other global policymakers, it is seeking to understand how to supervise a market that many feel is a speculative bubble.

“Mere issuance of an advisory is not sufficient when thousands of people have lost money in cryptocurrency,” said Pavan Duggal, a cyber expert and a lawyer with India’s top court.

“Government has the sovereign duty to come up with a legal framework to regulate the cryptocurrencies and protect genuine investors,” he said.

On Dec. 21, India’s capital market regulator said it was in talks with the government and central bank on how to regulate cryptocurrencies.

Bitcoin, the world’s biggest and best-known cryptocurrency, has gained more than 19-fold this year.

Digital currencies are very popular across Asia, with many retail investors giving up their regular jobs to trade them full time in countries such as Japan and South Korea, which together make up for more than half the global trading volumes by some estimates.

On Thursday, South Korea’s government said it would impose additional measures to regulate speculation in cryptocurrency trading within the country.

Source: NAN

PLACE YOUR TEXT ADVERT BELOW:>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

How I Made Me =N=2.5 MILLION In 7Days from 2 Common Product I Imported and how you can do the same. Click HERE FOR FREE Details right now

Loading...

SHARE YOUR STORY WITH US VIA EMAIL: INFO@247NIGERIANEWSUPDATE.CO

RECEIVE NEWS VIA OUR WHATSAPP, KINDLY TEXT +234 701 056 0394 TO ADD YOU

CLICK HERE TO JOIN US ON OUR YOUTUBE CHANNEL FOR NEWS UPDATE

CLICK HERE TO JOIN US ON TWITTER FOR INSTANT NEWS UPDATE: @247NGNEWSUPDATE

CLICK HERE TO JOIN MILLIONS AROUND THE GLOBE TO READ NEWS ON OUR FACEBOOK FAN PAGE

FOR INSTANT UPDATES ON INSTAGRAM CLICK HERE

RECEIVE INSTANT NEWS UPDATE VIA OUR BBM BROADCAST: D3EDEFDF

Post a Comment

 
Copyright © 2015 247 Nigeria News Update
Website by Tech Guardian