The Indian government is starting a campaign to raise investor knowledge of the hazards associated with investing in cryptocurrencies while educating them on their legality in the nation.
Indian Government’s Cryptocurrency Awareness Campaign
According to reports, the Indian government is starting a groundbreaking awareness campaign for cryptocurrencies. The Ministry of Corporate Affairs-controlled Investor Protection and Education Fund Authority will be in charge of running it.
ET cited a government representative as saying:
The campaign will highlight that cryptocurrencies are not legal in India and there are also deep risks involved in such assets. Any investment where the people are being promised lucrative and assured returns, there is an element of high risk.
Since 2019, the Indian government has been drafting a crypto policy, but nothing has been approved. Nirmala Sitharaman, the Indian Finance Minister, stated that the government intends to discuss cryptocurrency legislation with the G20 participants.
Since they have the potential to undermine the monetary and fiscal stability of the nation, cryptocurrencies like bitcoin and ether have been strongly discouraged by the Reserve Bank of India (RBI), the nation's central bank. Shaktikanta Das, governor of the RBI, has stated that if cryptocurrencies are not outlawed, they will be the cause of the next financial disaster. Sitharaman noted that for either regulation or prohibition to be successful, international cooperation is necessary.
Vice President at the Indian cryptocurrency exchange Wazirx, Rajagopal Menon, stated to The Hindu:
Cryptocurrency investing can be a complex and risky endeavor as the category is extremely volatile and works round the clock. It is important for potential investors to thoroughly educate themselves before making any decision.
Given that the Investor Protection and Education Fund Authority has run awareness campaigns on Ponzi scams, chit funds, and questionable crowdfunding initiatives, some people are worried that the Indian government's crypto campaign may present cryptocurrencies in a negative light.
A non-resident fellow at the Centre for Internet and Society (CIS), Vipul Kharbanda, was cited 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 presume incorrectly that it is illegal.
Bitcoin is not prohibited in India, according to the central bank and the Indian government.
The Indian government has implemented a 1% tax deducted at source (TDS) on cryptocurrency transactions and is taxing cryptocurrency income at a rate of 30% despite the absence of any legal framework for cryptocurrencies.
( Kevin Helms, Bitcoin.com , 2023 )