Indian media reported that Bitcoin is an illegal currency, and Bitcoin exchange Zebpay refuted it

Recently, Indian Bitcoin exchange Zebpay refuted reports about Bitcoin in the local media. The local media had claimed in the news that the Indian government had listed Bitcoin as an "illegal" currency.

On March 24, Indian MP Kirit Somaiya called Bitcoin a Ponzi scheme

On March 24 (last Friday), Indian politician Kirit Somaiya labeled Bitcoin as a "virtual currency", saying that Bitcoin only exists in imaginary consciousness and its overall operating structure is somewhat similar to a "Ponzi scheme."

Kirit Somaiya, a member of the ruling party in India and a member of the Indian Parliament, has recently expressed concerns about domestic financial regulators, including the Central Bank of India.

Since then, some Indian news media have reported the story and interpreted Kirit Somaiya's remarks as "the Indian government has listed Bitcoin as an 'illegal' currency." Because the media believes that Kirit Somaiya represents the Indian Parliament, and the "Ponzi scheme" itself is illegal, the media equates it.

Zebpay , one of India’s largest bitcoin exchanges, responded in a blog post:

“No, this is not true (referring to false media reports). There has been no change in the legal status of Bitcoin in India this week. In our opinion, Bitcoin is not illegal. Bitcoin does not violate any existing laws in India. All Bitcoin exchanges operating in India are still operating as usual.”

The reality is that since Bitcoin entered India, the Indian government has neither declared Bitcoin illegal nor passed legislation to confirm the legality of Bitcoin. Therefore, the local Indian media reports that "the Indian government has listed Bitcoin as an 'illegal' currency" are indeed incorrect.

Indian Bitcoin Exchange Zebpay Refutes Local Media Reports in Blog

Zebpay then asked KiritSomaiya directly and discussed the issue of "Ponzi scheme". Zebpay pointed out,

“Just like the ‘Indian fiat currency’ ruble is not a Ponzi scheme, neither is Bitcoin. Abuse of money is more like a Ponzi scheme than Bitcoin.”

Due to the "demonetization" of large-value currency in India , electronic currency has quickly become popular in the country. Currently, Bitcoin is becoming more and more popular among the people in India.

Zebpay wrote:

"The well-intentioned congressman wanted to do a good job of protecting people from Ponzi schemes. This is not objectionable in itself. However, due to the congressman's misunderstanding of Bitcoin technology, he said that Bitcoin is a Ponzi scheme, which is incorrect."

Since November last year , as the Indian public has become more aware of and more used to Bitcoin, media coverage of Bitcoin has gradually increased, especially after the unprecedented and controversial "demonetization order". According to the market data of domestic Bitcoin trading website btctrade, the price of Bitcoin today (March 28) is 6,830 yuan, a slight increase from yesterday.