The police from the northern state of Jammu & Kashmir, India on Wednesday issued a public statement warning the public against cryptocurrency investment, reports media outlet Bussiness Standard on January 2.
As per the report, police issued the warning highlighting the “heightened risk” associated with Bitcoin (BTC) investment and also reminding the public that the asset isn’t backed by any government.
Quoting the Inspector General (IG) of Crime Branch the report notes, “The general public is informed not to make any type of investment in cryptocurrencies, virtual currencies such as Bitcoin because there is a real and heightened risk associated with them.” adding, “this can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard-earned money.”
Currently, the ban on the financial institution to refrain from associating with cryptocurrency related business by the Reserve Bank of India (RBI) is still in effect and contested in the highest court of the country, the Supreme Court of India.
Meanwhile, earlier this week Pon Radhakrishnan, the Minister of State in the Ministry of Finance and Ministry of Shipping, said that the government is taking cautions while approaching towards cryptocurrency regulations. He said, “globally acceptable solution” is lacking and hence the lawmakers are unlikely to take any decision soon.
Yesterday, RBI also made an announcement on their postponement of plans to develop “crypto-rupee” a national cryptocurrency which they were thinking since April 2018.
Another report from the Hindu Business Line quoted an anonymous source claiming, “The government doesn’t want the digital currency any more. It thinks it is too early to even think about a digital currency.”