Investing in bitcoins? Exercise caution until regulatory cloud blows over

Limit your investment in cryptocurrencies and make sure to have your current holdings in your own custody

Cryptocurrencies are currently under regulatory fire from several directions. Until there is greater certainty about their status, investors need to exercise caution in dealing with this asset class.

Towards the end of December 2017, the Finance Ministry said that cryptocurrencies are not legal tender and have no regulatory permission or protection and that investors dealing in them are doing so at their own risk. The Ministry added that there is a real risk of an investment bubble similar to the Ponzi schemes, with investors risking a sudden and prolonged crash.

The Income Tax Department has sent tax notices to thousands