It could be a while yet till India sees a unified consensus on crypto.
Continuing the ongoing regulatory uncertainty concerning crypto in India, the Jammu and Kashmir Police recently advised people not to invest in crypto due to “heightened risk.”
As reported by Business Standard yesterday, the police stated that cryptocurrencies were not considered legal tender by the government, or well-established financial institutions. As such, the Reserve Bank of India has not licensed any company to deal in “virtual currency,” and no cryptocurrency is protected by regulators in India.
“The general public is informed not to make any type of investment in cryptocurrencies, virtual currencies (vcs) such as bitcoin because there is a real and heightened risk associated with them,” states an advisory issued by the Inspector General of Police Crime Branch. “This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hardearned money.”
According to the Inspector General, the public must be alerted to the potential traps posited by scams and other fraudulent schemes. He also reportedly placed a high risk on cryptos that implement blockchain technology, as the encrypted nature of transactions could enable the platform to be used to carry out smuggling, terror funding, and trafficking.
Though the recently-established second interdisciplinary committee in India hinted toward the possible legalisation of crypto in the country under harsh regulations, more recent reports only appear to be continuing the country’s mixed attitude toward digital currencies.
Though the interdisciplinary committee is due to discuss the insights gained from discussions at the G20 summit in Buenos Aires this month, finance minister Pon Radhakrishnan said that it could be a while yet until any clear recommendations can be made regarding crypto in India, due to the absence of a “globally acceptable solution and the need to devise technically feasible solutions.”
Source: Business Standard