High-Profile Indian Government Official Calls Bitcoin a Ponzi Scheme

Cryptocurrencies like bitcoin are Ponzi scheme and deserve to be banned to protect investors, at least according to Anurag Agarwal.

The joint secretary for India’s Ministry of Corporate Affairs accused bitcoin of simplifying financial frauds in the Indian markets. He said authorities were in favor of banning bitcoin, adding fuel to rumors indicating the Indian government’s likelihood of drafting an anti-bitcoin bill.

Bitcoin Ban

Agarwal is also the CEO of Investor Education and Protection Fund, a government-appointed organization that protects investors’ rights. The official’s tenure has seen investigations against companies accused of defrauding investors. His views could prove instrumental in the ongoing Supreme court case to determine whether or not the Indian government should legalize cryptocurrencies.

“When it comes to investor protection, the IEPFA has to take a stand against certain things. Against Ponzi schemes, we are taking a stand. We think that cryptocurrency is a Ponzi scheme and it should be banned,” Agarwal clarified his stance.

Bitcoin and any other form of cryptocurrency trading remain banned in India, according to a circular released by the Reserve Bank of India (RBI) last year. The Indian crypto community, in its response, dragged the central bank to the court, accusing it partial behavior towards an industry that is otherwise booming across the globe. The matter is now pending in the Supreme Court of India since July 2018. The next hearing is on July 23, 2019, which should conclude the case.

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