The Indian government has launched a crypto awareness campaign that will educate investors about the legality of cryptocurrencies in the country while highlighting the risks of investing in crypto assets.
Government of India Cryptocurrency Awareness Campaign
The Indian government has reportedly launched its first crypto awareness campaign. This will be done 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 illegal in India and that there are deep risks in these assets. Any investment where people are promised returns and are guaranteed, there is an element of high risk.
The Indian government has been working on a crypto policy from 2019 but nothing happened finished. India’s Finance Minister Nirmala Sitharaman said the government is planning talk crypto regulations with G20 members.
India’s central bank, the Reserve Bank of India (RBI), has long recommended a complete ban in all cryptocurrencies like bitcoin and ether, warning that potential to undermine the country’s monetary and fiscal stability. RBI Governor Shaktikanta Das recently spoke on the next financial crisis will come from cryptocurrencies if not banned. However, Sitharaman said it is necessary to ban and regulate international collaboration to be effective.
Rajagopal Menon, vice president at Indian crypto exchange Wazirx, told The Hindu:
Investing in Cryptocurrency can be a complicated and risky endeavor as the category is extremely volatile and can be used around the clock. It is important for potential investors to educate themselves before making a decision.
However, some are worried that the Indian government’s crypto campaign could paint cryptocurrencies in a poor light, as the Education Fund and Investor Protection Authority has been conducting awareness campaigns about Ponzi schemes, chit funds, and dubious crowdfunding projects.
Vipul Kharbanda, non-resident fellow at the Center for Internet and Society (CIS), was quoted as saying:
If the government takes a heavy-handed approach and starts saying things like virtual currency is illegal in India, this will not be true. People may think it’s wrong if it’s illegal.
The Indian government and central bank say that cryptocurrency not illegal in India.
Despite having no regulatory framework for cryptocurrencies, the Indian government taxes crypto income at 30% and imposes a 1% tax deducted at source (TDS) on crypto transactions.
Do you think the Indian government’s crypto awareness campaign will help or hurt the crypto industry? Let us know in the comments section below.
Image Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use or reliance on the content, goods or services mentioned in this article.