These virtual currencies are not backed by any assets', used for deals in bitcoin and other cryptocurrency prices that seem to ring a danger bell, the Finance Ministry expressed concern and compared them to Ponzi schemes . An official statement released on Friday warned against investing in them. This was stated in view of the "unprecedented rise" in the price of virtual currencies (VC) including bitcoin in India and globally. These patriarchs have no intrinsic value and are not supported by any form of property.
This price of bitcoin and other vice-chancellors is purely a matter of speculation resulting in a sharp rise in prices and its volatility. The statement said that consumers need to be very vigilant to avoid getting caught in such Ponzi schemes. Bitcoin prices fell by 2 per cent during the trading day, but another cryptocurrency ripple gained 20 per cent during the day. The government said that VC transactions are encrypted and are probably being used for terrorist funding, trafficking, drug trafficking and money laundering.
The Ministry stated that the Vice Chancellors are not credible as they are stored in digital / electronic format. This makes them vulnerable to hacking and malware attacks. Meanwhile, the Finance Ministry's position regarding the taxation of profits on cryptocurrency trading is still unclear. Earlier this month, the Income Tax Department surveyed nine VC exchanges in Bengaluru, Hyderabad, Mumbai, Delhi and Kochi to ascertain the source of funds.
According to this Chartered Accountants, the government must first specify the head under which such benefits should be declared. It is not defined as money laundering or any other economic crime; Nor is it a valid security like equity or bond. CA stated that players cannot pay tax without some clarity. However, the government cautions that "the chancellor is not supported by the government fighter" and is not a legal tender. VCs are neither currencies nor coins, and the government or RBI has not authorized them as a medium of note exchange.
