The Police of Indian states, Jammu and Kashmir issued an advisory warning for citizens, to not to make investments in cryptocurrencies like bitcoin (BTC) due to the “heightened risk” associated with them.
The police support their warning by stating the cryptocurrencies are not accepted as legal tender by the government and central financial institutions. The advisory issued by the Inspector General (IG) of crime branch states:
“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. This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hardearned money.”
The IG states that it is important for the citizens to be alert in order to avoid getting trapped in such fraudulent schemes. This warning notice and advisory, asks the general public to exercise caution against the risks of investing in virtual currencies as these are not backed as legal tender by the government and central financial institutions.
The advisory stated that the Reserve Bank of India (RBI) has neither licensed or authorized any entity and company to operate in schemes pertaining to cryptocurrencies. Notably, they do not have any regulatory permission or protection in the country.
Read more: Latest Update On Crypto Regulation In India