Police officers in the Jammu and Kashmir states of India now consider cryptocurrencies high risk and issued an advisory warning against investing in tokens. The warning coincides with Reserve Bank of India’s (RBI) announcement delaying the launch of its own Central Bank Digital Currency indefinitely. In India, similarly to most of the world, there are still no governmental policies regarding cryptocurrency exchanges. While the Indian government planned on introducing such regulations, so far none have been drafted. Moreover, no government or any central financial institution has supported any Indian exchange.
An advisory issued by the Inspector General 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 hard-earned money.”
Just two weeks ago, Indian police cracked a crypto Ponzi scheme. It successfully recovered 451,999 Bitcoins (nearly $2 million) and arrested Amit Bhardwaj, the scam’s ringleader, and his accomplices.