HYDERABAD: The recent surveys on cryptocurrency exchange centres in the country by I-T sleuths have put operators and analysts in a limbo. Though the constant rise and fall in price makes Bitcoin, a cryptocurrency, the perfect mode of investment, experts observe that investment in the volatile market situation is risky.
The ongoing analysis by the government and its take on the cryptocurrency as a ‘Ponzi scheme’ has also got many say that the future of cryptocurrency is not ‘bright’ in India. Any regulation would further reduce the purpose of its ‘cryptic’ nature, they say. “The government has made our operations complicated. If there is any irregularity, a concrete stand on cryptocurrency would help us either to consider other business models or look for angel investors,” said Mohammed Rezwan, Co-Founder, Bitxoxo Bitcoins Online Pvt. Ltd, a Bitcoin exchange centre.
It may be noted that Cyberabad cyber crime police station recorded a cryptocurrency related fraud in 2016 after which several scams involving Ponzi scheme were busted at several parts in the country.
“Though there are no recent cases reported with us, people should be cautious before investing in it,” said KCS Raghu Vir, Addl. DCP, Cyber Crime Police Station, Hyderabad. Meanwhile, Archit Tyagi, a financial advisor and investment banker, said that investors should take precautionary measures before investing. “Investment should be backed by research and its the responsibility of both exchange centres and that of the government to spread awareness,” he said.
“At present, cryptocurrency is neither regulated nor given an illegal status. That makes the bitcoins, in particular, to enjoy unregulated transactions. However, there are chances of it falling flat if regulations are in place,” observes Prakhar Bindal, CEO of Gambit Conference. However, some feel that regulation will open up the industry and bring in more players that will promote a health industry to thrive.