'Don't invest in Bitcoin!' Indian police authorities warn

04 Jan, 2019
by Joeri Cant
'Don't invest in Bitcoin!' Indian police authorities warn

Police authorities in the Indian state of Jammu and Kashmir warned people not to make investments in cryptocurrencies like Bitcoin, due to the heightened risk associated with these digital currencies.

A warning issued by the inspector general of the J&K police’s crime branch said that cryptocurrency investments can result in a sudden and prolonged crash that can see investors lose their hardearned money.

'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', the Inspector General of crime branch said.

Read more: Indian research panel concludes "all such currencies should be treated as illegal"

The IG further cautioned against investing in cryptocurrencies as these are not backed as legal tender by the government and central financial institutions.

'The Reserve Bank of India (RBI) has not given any license and authorisation to any entity and 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', the IG said.

The IG went then on say that all transactions are encrypted and 'there is high risk as this platform is used for carrying out subversive activities, smuggling, drug trafficking, human trafficking, terror funding and money laundering'.

Since the Reserve Bank of India put out an embargo on the country financial institutions stopping them from dealing with any cryptocurrency related businesses, back in April 2018, cryptocurrency has been all but outlawed within India.

Read more: India’s Finance Minister: no timeline yet in place for crypto regulation

However, as Chepicap previously reported, that might change in the nearby future, as the interdisciplinary committee set up by the India government is looking into the potential benefits and risks of cryptocurrency and are apparently in favor of legalizing and regulating cryptocurrency within the country.

Just today the Central Bank of India issued its yearly financial report which states that cryptocurrencies pose no threat to the financial industry in india. A statement which might bring us one step closer to the end of the cryptocurrency ban in India.

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Read more about: India Bitcoin (BTC)


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