CCEA Bans Ponzi Schemes And Cryptocurrencies

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New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, today gave approval to Unregulated Deposit Schemes Bill, 2018 that seeks to ban all unregulated deposit schemes including Ponzi schemes and the ones linked to Cryptocurrencies.

The bill is aimed at tackling the menace of illegal deposit taking activities in the country.

Companies and institutions running such schemes which exploit existing regulatory gaps and lack of strict administrative measures which unguard hard-earned savings of the people, the statement said.

The government had recently warned investors from investing in Cryptocurrencies like Bitcoins, saying those were like Ponzi schemes.

Finance Minister Arun Jaitley in his Budget 2018 speech had announced that a comprehensive central legislation would be brought in to deal with the menace of illegal deposit taking schemes, as in the recent past, there have been rising instances of people in various parts of the country being defrauded by illegal deposit taking schemes.

The bill to stop illegal deposit schemes would be introduced shortly after it get Finalised.

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