India remains one of the countries in the world with regulatory uncertainty when it comes to cryptocurrencies. While the Reserve Bank of India (RBI) has already clarified that digital assets are not illegal in the country. The Indian Police Department, Tamil Nadu has issued a new warning that the public should stay away from cryptocurrencies.
According to local media, the Hindu, the Economic Crimes Wing. He pointed who had received several complaints from investors who were scammed through cryptocurrency investments. While the authors of the registered cases were arrested. The law enforcement authority is now advising the public to avoid dealing with cryptocurrencies, including Bitcoin, Ether, XRP, and others.
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Trade crypto at your own risk
According to the warning, those who continue to invest in crypto would be to blame. Bearing in mind that the central bank of India has yet to give the go-ahead to companies. To offer products or services related to cryptocurrency.
«Those who traded in virtual currencies did so at their own risk. D"The Central Bank has not granted a license or authorization to any company to trade in such cryptocurrencies."said the special police unit.
Cryptocurrencies are like gold
The police further explained that cryptocurrency is not a currency according to the definition of money in the country, nor is it financial security. The cryptocurrency has the same characteristics as gold and other precious metals, since they behave like assets. They are not backed by a sovereign guarantee, so they are not considered legal tender, Indian police said.
Furthermore, the cryptocurrency market is unregulated, exposing investors to high risks, unlike other investment vehicles. For this reason, investors do not have an official body that can address their complaints if they lose their cryptocurrency investments. With so many uncertainties in the crypto space of India. The RBI issued a statement last month to clarify the position of cryptocurrencies in the country.
Cryptos are not illegal in India
El central bank The country noted that it has not banned bitcoin in the country, but rather restricted banks and financial institutions. As well as the provision of services to anyone who deals with cryptocurrencies due to the speculative and volatile nature of digital assets.
La declaration The RBI came in response to a legal case brought by the Internet and Mobile Association of India (IAMAI). The association insisted on the Central Bank directive that prohibits banks from dealing with cryptocurrency businesses. A tough position as cryptocurrency trading was not legally prohibited in the country.
