The law and enforcement agencies continue to view cryptocurrencies with a negative mindset. According to reports, the J&K police issued a warning to people about investing in cryptocurrencies because of the risks associated with them. The police also added that cryptocurrencies are not legal tender backed by the government and other
What is disheartening to see is that the police is clubbing even blue-chip cryptocurrencies like Bitcoin with other fraudulent schemes associated with cryptos. An Inspector General of a Crime Branch said that the public needed to be alert to avoid falling prey to such fraudulent schemes.
In addition, the advisory said a sudden and prolonged crash exposes investors, especially retail investors who risk losing their hard earned money.
It is important for law enforcement agencies in India to understand the difference between cryptocurrencies like Bitcoin and scams like GainBitcoin and Bitconnect. Clubbing them in the same bracket does a great disservice to the budding cryptocurrency and blockchain industry. Last year, the police had also wrongly arrested Unocoin founders for running an cryptocurrency kiosk. In light of such incidents, it is extremely important for the Indian government to bring cryptocurrency regulations quickly son that high quality projects and Indian investors do not miss the bus in this global revolution.