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India and its Fight Against Cryptocurrencies Continue

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The warning within the Indian states continues to flow in for the people against the dealings in crypto markets.

Recently on January 2, one local business daily newspaper reported that the police of the Indian state of Jammu and Kashmir had issued a public statement, warning the public against investing in cryptocurrencies.

The Police apparently cautioned the general public against the “heightened risk” of investments in crypto assets citing Bitcoin (BTC) as an example and also reminded that the government does not authorize the investors that are dealing or investing in such cryptocurrencies. The newspaper daily also quoted the branch’s inspector general as saying: “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.”

The inspector general also mentioned the crypto market could see a sudden crash and stated that the crypto market could witness a “sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard-earned money.”

Pon Radhakrishnan, the Minister of State in the Ministry of Finance and Ministry of Shipping had said earlier this week in a statement that the government is moving cautiously towards cryptocurrency regulation. Radhakrishnan further added that due to the absence of a “globally acceptable solution” the lawmakers were very likely to not issue any formal statues in the short term.

Based on a circular issued by the Reserve Bank of India (RBI), currently, there is also a ban imposed on the banks for honoring any transactions related to cryptocurrency. This ban against the crypto assets has forced many of the local businesses to shut shop.

Talking on the plans to launch its own national cryptocurrency, the “Crypto-rupee,” the RBI also announced that currently, it had deferred the plans to launch a national cryptocurrency. Earlier in April, the central bank had also announced its plan to launch the central bank digital currency (CBDC). But so far the bank has only been able to form an interdepartmental group to investigate the probable advantages of a CBDC.

None of the findings of the group have been disclosed yet. Basis a piece of information given by an unidentified source, The Hindu Business Line quoted that “The government doesn’t want the digital currency anymore. It thinks it is too early to even think about digital currency.”

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