The Indian government is launching a crypto awareness campaign that will educate investors on the legality of cryptocurrencies in the country, emphasizing the risks of investing in cryptocurrencies.
Government of India cryptocurrency awareness campaign
The Indian government is reportedly launching a first-of-its-kind crypto awareness campaign. It will be conducted by the Investor Protection and Education Fund Authority, a government body controlled by the Ministry of Corporate Affairs.
A government official was quoted by ET as saying:
The campaign will highlight that cryptocurrencies are not legal in India and that such assets also carry profound risks. Any investment where people are promised lucrative and assured returns has an element of high risk.
The Indian government has been working on a cryptocurrency policy since 2019, but nothing has been finalized. Indian Finance Minister Nirmala Sitharaman said the government intends to discuss cryptocurrency regulations with G20 members.
India’s central bank, the Reserve Bank of India (RBI), has long recommended a blanket ban on all cryptocurrencies such as bitcoin and ether, warning of their potential to destabilize the country’s monetary and fiscal stability. RBI Governor Shaktikanta Das recently said that the next financial crisis will come from cryptocurrencies if they are not banned. However, Sitharaman said both the ban and the regulation require international collaboration to be effective.
Rajagopal Menon, vice president of Indian cryptocurrency exchange Wazirx, told The Hindu:
Investing in cryptocurrency can be a complex and risky undertaking as the category is extremely volatile and operates around the clock. It is important for prospective investors to educate themselves thoroughly before making any decisions.
However, some are concerned that the Indian government’s crypto campaign could make cryptocurrencies look bad, as the Investor Protection Authority and Education Fund has been conducting awareness campaigns about Ponzi schemes, chit funds and dubious crowdfunding projects.
Vipul Kharbanda, a non-resident fellow at the Center for Internet and Society (CIS), is quoted as saying:
If the government takes a heavy handed approach and starts saying things like virtual currency is not legal in India, that will not be entirely true. People may incorrectly assume it is illegal.
Both the Indian government and the central bank have said that cryptocurrency is not illegal in India.
Despite not having a regulatory framework for cryptocurrency, the Indian government is taxing cryptocurrency income at 30% and has levied a 1% Deducted At Source (TDS) tax on crypto transactions.
Do you think the Indian government’s crypto awareness campaign will help or hurt the cryptocurrency industry? Let us know in the comments section below.
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