Said campaign will educate investors on the legality of cryptocurrencies in the country.
The Indian government is launching a cryptocurrency awareness campaign aimed at educating investors about the legality of cryptocurrencies in the country while also highlighting the risks of investing in crypto assets.
Cryptocurrency Campaign Details
The Indian government is reportedly launching a crypto awareness campaign, the first of its kind. It will be carried out by the Investor Protection and Education Fund Authority, a government agency controlled by the Ministry of Corporate Affairs.
ET quoted a government official as saying that the campaign “will highlight that cryptocurrencies are not legal in India, and that such assets also carry great risks. Any investment in which people are promised lucrative and assured returns, there is an element of high risk.”
The Indian government has been working on a crypto policy since 2019, but nothing has been finalized. India’s Finance Minister Nirmala Sitharaman said that the government plans to discuss crypto regulations with G20 members.
India’s central bank, the Reserve Bank of India (RBI), has long recommended an outright 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 that both the ban and the regulation require international collaboration to be effective.
Rajagopal Menon, vice president of Indian crypto exchange Wazirx, told The Hindu the following:
“Investing in cryptocurrencies can be a complex and risky undertaking, as the category is extremely volatile and runs around the clock. It is important that potential investors educate themselves thoroughly before making any decisions.”
Some Voice their Concerns
However, some are concerned that the Indian government’s crypto campaign could paint crypto in a poor light, as the Investor Protection and Education Fund Authority has conducted awareness campaigns about Ponzi schemes, chit funds, and dubious funding collective projects.
Vipul Kharbanda, a non-resident fellow at the Center for Internet and Society (CIS), was quoted as saying the following:
“If the government takes a heavy-handed approach and starts saying things like virtual currency isn’t legal in India, that won’t be entirely true. People may incorrectly assume that it is illegal.”
Both the Indian government and the central bank have said that cryptocurrencies are not illegal in India.
Despite having no regulatory framework for cryptocurrencies, the Indian government is taxing cryptocurrency income at 30%, and has imposed a 1% deducted at source (TDS) tax on cryptocurrency transactions.
Whether the Indian government’s cryptocurrency awareness campaign will help or hurt the cryptocurrency industry remains to be seen.
By Audy Castaneda
