Police in the Indian state of Jammu and Kashmir issued a statement warning the public about the risk of investing in cryptocurrencies, reports Business Standard.

Law enforcement officers also reminded that this form of currency is not recognized by the government and Central financial institutions as a legal means of payment.

The General public is informed that one should not invest in cryptocurrencies, virtual currencies such as bitcoin, because the associated real and increased risk” — quoted by the business newspaper of the inspector General of police of the region.

The police official also said that the cryptocurrency market could face “a sudden and prolonged collapse, impact on investors, especially retail consumers, which can lose their hard-earned money.”

Currently in India there is a ban of the Central Bank to service the financial institutions of the cryptocurrency industry. Hard the authorities ‘ approach to the regulation of scriptaction led to the resignation of the country some companies in the industry. With the unexpected consequences of such policy has faced and the police in the case of cryptocurrency Ponzi scheme was not a single victim, since people were afraid to admit that invested in cryptocurrency.

The intergovernmental Commission, which will develop proposals for legislative regulation of the cryptocurrency market over the years several times to reschedule the publication of its findings. According to leaks to the press, the working group’s opinion varied from a complete ban of cryptocurrencies, to the laundering of assets according to strict rules.