Leading Indian bitcoin startup Zebpay has issued an official statement falsifying recent reports that suggested that bitcoin has been declared illegal by the Indian government.

“Nothing has changed regarding bitcoin’s legal status in India this week. In our opinion, bitcoin is not illegal. Bitcoin is legal under all existing laws. It’s business as usual at all Indian bitcoin exchanges, including Zebpay.”, said an official blog post by Zebpay.

Zebpay said that certain sections of the media including a yesterday’s report by The Economics Times said that bitcoin has been declared illegal and can attract anti-money laundering law.

Notably, this hoax news spread when a member of parliament (MP) raised the issue that bitcoin is a ponzi scheme. The company went on to explain that bitcoin is not a ponzi scheme, saying:

There are a few ponzi schemes which use bitcoin as the payment method. Just like Rupee is not a ponzi, neither is bitcoin. In fact for a few months now, we have been regularly warning our users to beware of such ponzi schemes on our website, Facebook and Twitter accounts.

However, last month RBI did issued a statement where it cautioned users, holders and traders of virtual currency, including Bitcoin, about the potential financial, legal and security risks arising from the usage.

According to India Today, the user base of Bitcoin in India has expanded 250 percent since November 2016, when demonetization happened.

[Top Image – Shutterstock]

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