Cryptocurrencies should be banned in India, government official

Cryptocurrencies are a “ponzi scheme” and should be banned in order to protect the interests of investors, according to an Indian government official.

“When it comes to investor protection, the Investor Education and Protection Fund (IEPFA) has to take a stand against certain things. Against ponzi schemes, we are taking a stand. We think that cryptocurrency is a ponzi scheme and it should be banned,” IEPFA CEO Anurag Agarwal said this week.

Agarwal, also a Joint Secretary in the corporate affairs ministry, added that the government planned to take a stand here. While the latter has yet to green light a ban on cryptocurrencies, the Reserve Bank of India (RBI) has tightened the rules to discourage use of Bitcoin et al.

Zebpay exits stage left

Last year, Indian cryptocurrency exchange Zebpay officially commenced operations from ‘Blockchain Island’, Malta.

The company had been a major player in the Indian market, once boasting an estimated five to six million investors on its platform. But problems arose when the country’s government and the RBI sanctioned a mass crackdown on crypto exchanges and trading sites and it subsequently announced that it was stopping its exchange activities.

“Governments and regulators around the world are waking up to the potential of blockchain-based technologies. But Malta stands out with its progressive regulations for this emerging sector,” said Zebpay CEO Ajeet Khurana.

“Choosing Malta as our global launchpad was a no-brainer, and I would like to wholeheartedly thank Prime Minister Dr. Joseph Muscat for his visionary approach.”