You are here: Home » PTI Stories » National » News
Business Standard

J&K police warns against investing in cryptocurrency

Business Finance

Press Trust of India  |  Jammu 

Jammu and Kashmir Police Wednesday issued an advisory warning people not to make investments in cryptocurrencies like bitcoin due to the "heightened risk" associated with them.

The police also said this form of currency was not backed as legal tender by the government and central financial institutions.

"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," an advisory issued by the Inspector General (IG) of crime branch said.

"This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hardearned money," it said.

The IG said the public needed to be alert to avoid getting trapped in such fraudulent schemes.

Through the medium of this warning notice and advisory, the general public is cautioned against the risks of investing in virtual currencies as these are not backed as legal tender by the government and central financial institutions, he said.

The Reserve Bank of India (RBI) has not given any license and authorisation to any entity and company to operate in such schemes or deal with bitcoin or any virtual currency, and such cryptocurrencies do not have any regulatory permission or protection in India, the advisory stated.

As there is no regulatory oversight on cryptocurrencies which use blockchain technology, all transactions are encrypted and there is high risk as this platform is used for carrying out subversive activities, smuggling, drug trafficking, human trafficking, terror funding and money laundering, the IG added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 02 2019. 22:55 IST