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Jammu and Kashmir Police Issues Advisory Against Cryptocurrencies

January 03, 2019 12:19
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Source: The Wire
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On Wednesday, the Jammu and Kashmir police issued an advisory to the general public cautioning them against using or investing in cryptocurrencies.

The advisory which was issued under the signature of the Inspector General of Police,
State Crime Branch J&K, said, “The general public is therefore informed, not to make any type of investment in crypto – currencies/ virtual currencies (vcs) 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 loose their hard –earned money. public needs to be alert and extremely cautious to avoid getting trapped in such fraudulent schemes.”

The warning further stated, “The RBI did not give any license/authorization to any entity/Company to operate in such schemes or deal with Bit-coin or any Virtual Currency and such Crypto-currencies do not have any regulatory permission or protection in India. As there is no regulatory oversight on the Crypto-currencies which uses Block-chain technology, all the transactions are encrypted and there is high ended risk as this platform is used for carrying out subversive activities, smuggling, Drug Trafficking, human trafficking, terror funding and money laundering activities.”

This warning comes soon on the heels of the recent Parliamentary session when Member of Parliament (MP), Varun Gandhi asked in the Lok Sabha what the government’s stance on cryptocurrencies were.

A questionnaire was presented to the House in which there were several questions on cryptocurrencies. As earlier reported by Crypto-News India, that the rumors of a national cryptocurrency were not unfounded. It’s also worth noting that the Inter-ministerial committee working on regulations includes members from Ministry of Electronics and Information Technology, SEBI, RBI, CBDT and Department of Economic Affairs. This suggests how wide government thinks the scope of regulation is in this particular space.

However, a portion of the answer provided by Shri Pon. Radhakrishnan said, “… in absence of a globally acceptable solution and the need to devise technically feasible solution, the Department is pursuing the matter with due caution. It is difficult to state a specific timeline to come up with clear recommendations.”

It is safe to say that the government will not impose a direct ban and it will probably spend a little more time deciding the best course of action.

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