Jammu and Kashmir police on Wednesday cautioned general public against the risks of investing in virtual currencies and crypto-currencies such as Bitcoin “as these are not backed as legal tender by the government institutions.”
“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 sudden and prolonged crash exposing investors especially retail consumers of losing their hard–earned money,” a police handout reads. It also said, “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 and money laundering activities,” it said. GKNN