Bitcoin exchanges are set to come under investigative agencies scanner after the government warned people of the risk of investing in cryptocurrencies, which are not backed by government fiat, and likened them to Ponzi schemes.
Enforcement agencies could act against bitcoin platforms and exchanges for illegal money pooling, an official at an enforcement agency said on condition of anonymity.
The capital markets regulator, the Securities and Exchange Board of India (Sebi), too will take action against these exchanges if they are serving as collective investment schemes, a senior Sebi official said on condition of anonymity.