The Indian Economic Offences Wing (EOW) is warning residents again, against dealing with digital currencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and more, due to the risk involved.  According to a<a href="https://www.thehindu.com/news/cities/chennai/police-warning-against-dealing-with-cryptocurrency/article30787325.ece"> report</a> today by the local news outlet, The Hindu, there are cases reported in Tamil Nadu, a state in India, where investors were being cheated in cryptocurrencies, although the accused were later arrested.

Therefore, as a precaution, the public is advised not to deal with such cryptocurrencies. Those who continue to trade cryptos will be at their own risk since no company has been licensed by the central bank to operate in digital currencies, reads the warning.
<h2>Are Digital Currencies a Legal Tender?</h2>
A special unit of police in India added that cryptocurrencies are neither a currency nor a derivative, as claimed, following the definition of currency in the country. They are virtual currency similar to goods like precious metals or gold, which acts like assets.

Bitcoin, Ether, Litecoin, and a few other cryptocurrencies are not backed by a sovereign guarantee; hence, they are not supposed to be seen as a legal tender. Moreover, these crypto are not regulated by government entities or agencies, unlike other investment avenues. Given that the government didn’t endorse or approve digital currency as legal tender in the country, the investors, therefore, will have no official authority to report their grievances.

Notably, the Indian Economic Offences Wing warning today echoes that of the country's central bank, the Reserve Bank of India (RBI). The bank continuously warned citizens who trade or hold cryptos against various risks associated with them.

Specifically, RBI warned that activities in cryptocurrency could possibly result in the money laundering, violation of market integrity, and consumer protection. To this extent, the central bank prohibited every entity it regulates from dealing with cryptos. However, as an alternative, the country is looking to provide an<a href="https://www.cryptoknowmics.com/crypto/?p=152139"> official digital currency</a> to the residents, the one that it can closely monitor and regulate.

Indian Economic Offences Wing Warns Public Against Digital Currencies

The Indian Economic Offences Wing (EOW) is warning residents again, against dealing with digital currencies such as Bitcoin (BTC), Ethereum (ETH).

Ibiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

Indian Economic Offences Wing Warns Public Against Digital Currencies

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