The Indian government through its ministry of finance released a statement on the 29th of December 2017 in which it warns people to refrain from making investments in digital money like Ethereum or Bitcoin. It went on further and linked cryptocurrencies to Ponzi schemes. The ministry in question put forth a written statement telling its citizens about the risk that come along with Bitcoin and similar investements. They back their claims by saying that these digital currencies don’t have intrinsic value like gold and that they aren’t backed by governments like fiat currency is. They go on to say that speculators are pushing up Bitcoin and other currency values. Here is part of the above-mentioned statement: There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped.The ministry goes on to say that there is no government backing provided for virtual currencies. Moreover, they are not legal tender. The government body from Indian also considers encryption during transactions a clear sign that these platforms are prone to use in illicit activities. According to them, this includes funding of terrorist groups, trafficking of people and drugs, and laundering moneyThe statement also warns any potential investors that there is no protection for users of digital currencies and that trading is done at the risk of each individual or organization willing to trade in Bitcoins or Altcoins. The best course of action is to not involve themselves with these currencies. This leaves no doubt about the position India’s government is taking when it comes to decentralized digital money. In this latest address, the Finance ministry reminded us of three past such statements issued by the central bank of India over the past four years. Despite these warning, the industry built up around mining cryptocurrencies in India still lacks regulation. Even though there have been various initiatives to come up with a framework for regulations, no concrete plans have been put forth. The supreme court in this country has been pushing the government to start working on regulations, specifically to have rules which could control the flow of regular currency in Bitcoin trades. Luckily for everyone using cryptocurrencies in India, there have been no bans, crackdowns or plans for such measures to take place in the future. So far, the Indian government has been content with putting out warnings. It seems that politicians in this country are not yet ready to make drastic changes like the ones South Korea is planning. To remind all our redears, South Korea has put into motion a plan to prevent all trading exchanges from making new user accounts. What’s more, only citizens of age will be able to own trading accounts in the future.