Police in the Indian state of Jammu and Kashmir published a statement warning the public against investing in cryptocurrencies, according to one of the largest Indian daily newspapers Business Standard.
Police warned the public against the "increased risk" of such investments as Bitcoin (BTC), and reminded investors that the cryptocurrencies is not authorized by the government. Business Standard quotes the words of the branch inspector general: "The public is informed that you should not invest in cryptocurrencies such as Bitcoin, since communication with them carries only increased risk."
The inspector general also stated that the "cryptocurrency market could at any moment be faced with a sudden collapse, as a result of which investors will suffer heavy losses, and retail consumers will lose their hard-earned money."
Ban on banks with crypto operations
Currently in India there is a ban on banks servicing operations related to cryptocurrency, in accordance with a circular issued by the Reserve Central Bank of India. Strict rules and restrictions on digital assets led several local businesses to the call to the Supreme Court of India.
State Finance Minister Pon Radhakrishnan said earlier this week that the government is cautious about cryptocurrency regulation. And the right decision will be to temporarily protect the public from investing in cryptocurrency. Radhakrishnan said that the lack of a "generally accepted solution" means that legislators are unlikely to issue an "official permit" in the short term.
Central Bank of India
RBI announced yesterday that it has postponed plans to create a national cryptocurrency. In April 2018, the bank considered the issue of creating a national cryptocurrency, but the creation was suspended because it raises many doubts and risks.
Editor: Yuliya Soroka