NEW DELHI: The government has received a considerable number of complaints against cryptocurrency exchanges after many people failed to get back their money, which they invested in virtual currencies like bitcoins, even after repeated attempts, as per sources familiar with the matter.
Many ministries including finance, home affairs and consumer affairs have been receiving complaints against these exchanges lately for not answering the traders’ requests for a refund of their money. “In the past Indian Premier League (IPL), many crypto investment platforms advertised massively, leading to a significant rise in investment in bitcoins. Many people who had put their money in these currencies are not able to get back their money as this is an unregulated sector. There is no redressal mechanism if someone is duped of money,” a person familiar with the matter, requesting anonymity, told TNIE. According to sources in the know, a huge sum of money is stuck with these exchanges, which is quite worrisome.
According to the insiders who directly deal with the government, the finance ministry is weighing three-four options to monitor cryptos. Either they can put a complete ban on its trading or they can put a partial ban. They can also partially regulate the trading in crypto or completely regulate it by involving SEBI and the RBI.
Though the government has taxed income from crypto transfers at 30% from April 1, it has not taken any stance on its regulation. Recently, Finance Minister Nirmala Sitharaman, in Washington, had raised concerns about money laundering and illegal funding including terrorism via cryptos. She said India would take a considerate decision on crypto regulation.