Several financial sector watchdogs in India, including the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), have scheduled a meeting to develop a framework aimed at protecting the public amidst the continuous rise in the price of Bitcoin.
The price of the most famous digital currency has sustained its phenomenal upward trajectory in the past few days, triggering fears that it could lead to electronic Ponzi (e-Ponzi) schemes.
The price of Bitcoin has reached another all-time high on December 12, 2017, two days after the launching of the first-ever Bitcoin futures product on a US-based stock exchange.
The majority of investors have claimed that the cryptocurrency can hit the price of $20,000 per token in the next few days as another futures trading initiative in the US is due to be launched next week.
Because of the volatility and continuous increase in Bitcoin’s price, the Indian government was concerned that these could be exploited by unscrupulous groups or individuals to advance their illicit and illegal operations.
In order to prevent such possibility, the various financial regulators and other government agencies have decided to meet in the next few days to protect the unsuspicious investors and to prevent fraudsters from manipulating the regulatory gaps to their advantage.
Among the possible safeguards that may be adopted is the application of existing regulations aimed at preventing the spread of Ponzi schemes or illegal money-pooling activities, money laundering, and black money generation and circulation to regulate the cryptocurrencies.
Meanwhile, the country’s Income Tax Department has also carried out survey operations at major Bitcoin exchanges around the country to ensure that they are paying their correct taxes. Among the exchanges that were visited are those operating in Delhi, Bengaluru, Gurugram, Kochi, and Hyderabad.