India likens cryptocurrencies to Ponzi scheme

India's Finance Minister Arun Jaitley Photo:Courtesy

India’s finance ministry on Friday cautioned investors about the risks of trading in cryptocurrencies such as bitcoin, saying digital currency investments are like “Ponzi schemes.

” Cryptocurrencies are not legal tender and have no regulatory permission or protection in the country, the Finance Ministry said in a statement, but stopped short of announcing an outright ban.

Investors and other participants dealing with such digital currencies are doing so “entirely at their risk and should best avoid participating therein.”