Challenges in regulating cryptocurrencies
Cryptocurrency transactions have led to concerns regarding consumer protection, money laundering, and financing of criminal activities
A statement by the ministry of finance on cryptocurrencies warned investors to “stay away from such Ponzi schemes" as there is a “heightened risk of investment bubble of the type seen in Ponzi schemes". This is the latest in a series of warnings and advisories issued by the government and the central bank in India. Countries across the world are grappling with the choice of an optimal regulatory framework in this field. Any regulatory framework in this field requires a comprehensive understanding of the functioning and structure of cryptocurrencies.