The police of the Indian state of Jammu and Kashmir have issued a public statement, warning the general public against investment in cryptocurrencies, local news daily the Business standard reported on January. 2.

Police reportedly warned the general public against the “heightened risk” of investments like Bitcoin (BTC) and reminded investors that cryptocurrencies aren't sanctioned by the govt. The branch’s inspector general said:

"The general public is informed not to make any kind of investment in cryptocurrencies, virtual currencies like Bitcoin as a result of there's a real and heightened risk associated with them."

The military officer additional declared that the crypto market might experience a “sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard-earned cash.”

India presently enforces a ban on banks servicing cryptocurrency-related operations following a circular issued by the Federal Reserve Bank of India (RBI). The hard line against digital assets has led to the exit of many local businesses and a challenge within the Indian Supreme Court.

Earlier in the week, Pon Radhakrishnan, the Minister of State in the Ministry of Finance and Ministry of Shipping, said that the govt is approaching cryptocurrency regulation with caution. Radhakrishnan said that the lack of a “globally acceptable solution” meant lawmakers were unlikely to issue formal statues within the short term.

Yesterday, the RBI declared that it's delayed plans to develop a national cryptocurrency or “crypto-rupee.” India’s central bank originally declared it had been considering a central bank digital currency (CBDC) in Apr 2018, going so far as to establish an interdepartmental group to analyze the potential benefits of a CBDC.

The findings of the group haven't been disclosed, and therefore the Hindu business line quotes an unidentified source as saying, “The government doesn’t need the digital currency any more. It thinks it's too early to even consider a digital currency.”

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