The Ministry of Finance of India: cryptocurrencies resemble financial pyramids


The authorities of India warned citizens of the country about the risks associated with the trade in cryptocurrencies by comparing block-assets with financial pyramids. This was reported by the press service of the Indian government.

“The price of bitcoin and other cryptocurrency is completely dependent on speculation, which is the cause of volatility. The risk of an investment bubble, characteristic of financial pyramids, is real and very high. Users should be vigilant and extremely careful not to fall into the trap of such Ponzi schemes,” the Ministry of Finance said in a statement.

The Office does not recognize cryptocurrency as a legitimate means of payment, nor does it license the activity of crypto-exchange exchanges. Thus, crypto-investors expose themselves to potential financial, operational and legal risks.

We can assume that the ministry appealed to the traders of Koinex, the largest in the country, with a daily trading volume of $ 115 million.

Earlier reported that the Tax Service of India began checking the largest crypto-exchange exchanges in the case of possible tax evasion. In addition, the agency is investigating against wealthy bitcoin entrepreneurs.

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