An Indian state police issued warning against use of cryptocurrency
Indian authorities have released another warning statement that propagates anti-cryptocurrency sentiments, yet again. This time the Jammu & Kashmir chapter of the Indian Police.
In a circular issued by them in the turbulent area of Jammu and Kashmir, the J&K police said,
“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. This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard-earned money.”
The circular exploits the volatile nature of the cryptocurrency market and points out that for investors that are inexperienced, the cryptocurrency market could mean a lot of losses.
This circular was released by the Jammu and Kashmir police division on the 2nd of January as a statutory warning against cryptocurrency investments in the country. The circular further goes on to say that cryptocurrencies and virtual currencies are not recognised by India as a legal tender. And that there is no regulation or sanctioning around the market either.
This news was reported by the Hindu Business Line over the last two days.
India Stalls National Crypto Coin
Late last year, there was talk that the Reserve Bank of India was planning to release its very own cryptocurrency coin on the 1st of January. But that was not the case because the RBI announced that they were stalling the release for now.
The reasons cited were that the country was not ready yet and releasing a cryptocurrency at this point would be quite premature. Another major factor that must’ve played a part in this decision is the ongoing court cases that have been waiting for verdicts because of the blanket ban imposed by the RBI in April 2018.
A source close to the government said that; “It [the government] thinks it is too early to even think about a digital currency.”
To Regulate or Not to Regulate?
The cryptocurrency market and community in India has always operated in the gray zone, taking advantage of the many loopholes that the lack of regulation allowed. But in April 2018, the Reserve Bank of India released a decree, warning all banks, businesses and enterprises registered with them to pull support being lent to the cryptocurrency market.
It was the first time that the Indian government had gone on record about its position on the cryptocurrency market. The decree was immediately challenged in the high courts across the nation and went up to the Supreme Court of India. But a verdict is yet to be reached on the issue.
The verdict that comes out of this court case will determine whether or not the cryptocurrency market will get regulated or not in the country. But the judiciary in the country takes its time, while the future of the cryptocurrency market and community of India hang in the balance.