The ruling is finally out! Bitcoin is not valid in India and it is not a legal tender to deal with for any transaction. The Indian government on 30th Dec 2017 cautioned people against the risks of virtual currencies. It said that virtual currencies like bitcoin are not legal tender and do not have any protection or regulatory permission in India. It said virtual currencies are not authorized by government.
The caution comes in the wake of a rush in interest in crypto currencies, increased by enormous returns in recent times. As per government, virtual currencies, also called as ‘coins’ are not legal tender and hence there is no meaning to these coins. For that simple reason, virtual 'currencies' are neither currencies nor coins. The Government has not authorized any virtual currency as a medium of exchange.
The Government of India has not given permission to anyone to work as exchange or any other kind of agency for any virtual currency. In recent times, there has been an unusual raise in the value of virtual currencies especially the bitcoin, in India and worldwide. The Government said virtual currencies do not have any inherent value and are not supported by any kind of resources.
Therefore, the price of bitcoin and other virtual currencies is totally a matter of simple guesswork, resulting in burst and instability. There is a sharp and real risk of investment bubble of the type happened in Ponzi schemes.
It can result in swift and lingering collision for investors. Retail consumers losing their hard-earned money are high, as per Government. People need to be extremely cautious and alert and avoid getting trapped in such Ponzi schemes
As per Government, these currencies are held in digital electronic format. It makes them exposed to malware attack, loss of password and hacking. It may also result in permanent loss of money. Virtual currency transactions are encrypted. Hence, they are also likely to be used to carry out illegal activities, like money laundering, drug trafficking, smuggling and terror-funding. People must think about these facts and be cautious of risks involved in dealing with virtual currencies.
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