On January 2, the Jammu and Kashmir police issued an advisory to the general public cautioning them against using or investing in cryptocurrencies.
The advisory was issued under the signature of the Inspector General of Police, State Crime Branch J&K.
“The general public is therefore informed, not to make any type of investment in cryptocurrencies / virtual currencies (vcs) because there is a real and heightened risk associated with them. This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard–earned money. Public needs to be alert and extremely cautious to avoid getting trapped in such fraudulent schemes,” – the document reads.
“The RBI did not give any license/authorization to any entity/company to operate in such schemes or deal with bitcoin or any virtual currency and such cryptocurrencies do not have any regulatory permission or protection in India. As there is no regulatory oversight on the cryptocurrencies which uses blockchain technology, all the transactions are encrypted and there is high ended risk as this platform is used for carrying out subversive activities, smuggling, drug trafficking, human trafficking, terrorist financing and money laundering activities,” – it is further stated in the advisory.
This warning comes soon on the heels of the recent Parliamentary session when Member of Parliament (MP), Varun Gandhi asked in the Lok Sabha what the government’s stance on cryptocurrencies was.
A questionnaire was presented to the House in which there were several questions on cryptocurrencies. It’s also worth noting that the Interministerial committee working on regulations includes members from Ministry of Electronics and Information Technology, SEBI, RBI, CBDT and Department of Economic Affairs. This suggests how wide government thinks the scope of regulation is in this particular space.
Back in September 2018, the Reserve Bank of India (RBI) filed an affidavit stating that cryptocurrencies, such as bitcoins, could not be recognized under the current legal regime as a legal means of payment. It is safe to say, however, that the Indian government will not impose a direct ban and it will probably spend a little more time deciding the best course of action.
This news was provided by Crypto News India, our partnering media source in India.