The Ministry of Finance, Government of India has cautioned to be very cautious while investing in Virtual currencies. The GoI also called the Virtual currencies to be like Ponzi Schemes. The caution from the Indian Finance Ministry has come at a time when the virtual currency had seen a rally recently and sensing the sentiment of people that everybody might be finding these virtual currencies as a prospective investment option when the real estate and other business prospects and investment avenues in India have gone for a toss. Investment in virtual currencies may result in permanent loss of money.

VCs are not backed by Government fiat, it said clearly. the Government or any other regulator in India has not given license to any agency for working as exchange or any other kind of intermediary for any VC. Persons dealing in them must consider these facts and beware of the risks involved in dealing in VCs, it further said. 

1 Bitcoin equals 929793.51 Indian Rupee [Dec-29-2017 2:40PM]

Here is the full text of the release that says that Investing in Virtual ‘Currencies’; is like investing in Ponzi Schemes.