Indian Government Thinks Cryptocurrencies Are Similar To Ponzi Schemes!
You read that right! Nothing that our government does shocks me anymore, and there’s not a lot of positive surprises from them in anycase. So a statement that likens Bitcoins to Ponzi Schemes from the Ministry of Finance is nothing scary. But sometimes when I read these things it makes me want to break into a laugh!
Today, the Ministry of Finance has cautioned cryptocurrency users in their statement about the risks of investing in these digital currencies such as Bitcoin and other alt-coins. If you are unfamiliar with Ponzi schemes then you can read all about them here!
Fortunately, they stopped short of any outright bans or imposing any curbs on trading these speculative assets. If you are worried about any bans in the short-term then there’s no need to worry as it’s unlikely that this will ever happen!
VCs are not backed by Government fiat. These are also not legal tender. Hence, VCs are not currencies. These are also being described as ‘Coins’. There is however no physical attribute to these coins. Therefore, Virtual ‘Currencies’ (VCs) are neither currencies nor coins. 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.
This doesn't imply that exchanges are affected in anyway in their operations. KYC is mandatory but beyond that there are no curbs or restrictions. However, any trades that you conduct or any cryptocurrencies that you hold in any Indian exchange account is tracked and the Income Tax department will have full access to that data whenever they choose to audit any exchange registered in India.
There are no regulations yet and the government still feels VCs are likely to be used for funding terror activities amongst other things. It’s not like they’ve been able to curb any illegal activities with fiat currency. Seems like crypto is a great place to shift blame when problems inherent with fiat money remain unresolved.
Education is key to improving your knowledge of this space and sometimes I feel that the government is still ignorant about a few things. Ofcourse, they want us to be safe in some aspects-there are indeed bad actors and scammers in this space and it's upto us to protect ourselves.
Hopefully in 2018, we’ll see some real progress in India on these lines. About time we got a proper framework. As of now, the stance is pretty clear, cryptocurrencies are not legal tender in India. The government also feels that the market is too small in India to be regulated. Perhaps if a few million users signed up in a matter of months-it might change the minds of the policy makers.
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Do you think this announcement has anything to do with the pump of the crypto called "Rupee"?
https://coinmarketcap.com/currencies/rupee/
I dont think so. There are far too many pump and dump coins on the market. Hard to say what moves them. Mostly it could be due to low liquidity or market manipulation. Not sure what is the case here.
Yes you are correct the Rupee ICO is stated to start a new crypto exchange
https://steemit.com/india/@manojm/india-bitcoin-craze-but-govt-posts-bitcoin-as-a-ponzi-scheme
Read upvote follow
Read upvote follow
https://steemit.com/cryptocurrency/@manojm/bitcoin-cash-the-coin-which-will-rise-to-usd10000-january-2018
Better sell your Bitcoin profits now. Some exchanges are having over a week long delays! Not sure why..
Nowadays it is much risky to keep money in banks, and after FRDI bill, neither government nor bank will have any liability of our money if the bank goes bankrupt. Secondly, if the VCs are not a legal tender then why they are collecting taxes on them. Totally confused government!
They are half right. They just need to turn it around and tell everyone the truth that modern aggressively run governments ruling the people are funded by future generations due to unsustainable future debt. Last I checked that was a Ponzi scheme's literal definition.
exactly !!
The government have not clearly understood about cryptocurrencies and how they work.
you are correct. they must have already though how to loot people on crypto also...
https://steemit.com/ripple/@manojm/ripple-surge-more-than-70-to-2-52usd
Read,upvote & follow
most of Governments in the world think the same thing. I live in Morocco and it is the same thing. moreover, If they catch you trading digital currencies in Morocco or you buy something with a digital currency there a high possibility to be in Jail.
evernthough, I personally trade digital currencies and invest in them because I personally believe in the power of the blockchain and some day It will be powerful then governments and give financial freedom to everyone.
Wow, I had know idea. That's not right at all.
Recently Central Bank of Bangladesh issued a warning about cryptocurrency and it circulated on all national newspaper.
https://steemit.com/bitcoin/@syfulcomet/bangladesh-bank-has-issued-a-warning-about-bitcoin
Government will do anything and will keep doing many things just to get hold of what they consider threat. I think they see crypto currencies as threat. Why? Because it is decentralised.
Had they were the one that control crypto currencies, I don't think all of these stories will come up.
As long as the world is evolving into blockchain technology, everyone will grab the opportunity and make good use of it.
Besides, Ponzi schemes made many people to know about crypto currencies. I came to know about Bitcoin when reading about MMM.
i am not convened with this statement of your's
" they want us to be safe in some aspects-there are indeed bad actors and scammers in this space and it's upto us to protect ourselves". Government itslef is a bad actor. their idea is not our safety. they are thinking how they can get benefited individually
good post. i am resteeming it
interesting perspective. Normally I have seen the elder generation giving all the support to governments and go after government instruments (bonds, indira vikas patra, kissan vikas whatever, Provident funds etc). Looks like the demonetization has changed the perspective of the entire nation ?
How could government think that virtual currencies will be used for funding terror activities? Cryptocurrencies are being accepted all over the globe. I can's understand that Why India is ignoring this.
It would be a scam if you had to pay actual money to gain crypto.
And then Steemit proves them wrong.
Government is a bunch of idiots.. they should learn and study the different kind of crytocurrencies first before saying it.