Indian Government Launching Crypto Awareness Campaign
The government of India is launching 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.
The Indian government is reportedly launching a crypto awareness campaign it will be conducted by the investor's Protection and Education Fund Authority a government body controlled by the Ministry of Corporate Affairs.
According to the Indian Government:
"The campaign will highlight that cryptocurrencies are not legal in India and there are also deep risks involved in digital assets. any investment where the people are being promised lucrative and assured returns there is an element of high risk."
The government of India has been working on a crypto policy since 2019 but nothing has been finalized yet. Indian Finance Minister Nirmala Sitharaman express the government's aim to discuss crypto regulation with the G20 members.
The Reserve Bank of India (RBI) has recommended a complete ban on all cryptocurrencies of their potential to destabilize the country's monetary and fiscal stability RBI Governor Shaktikanta Das express the next financial crisis will come from cryptocurrencies if they are not prohibited. Sitharaman said both banning and regulating required international collaboration to be effective.
According to Rajagopal Menon, Vice president at WazirX:
"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 educate before making any investing decision."
Indian government crypto campaign may paint cryptocurrencies in poor light, given that the investor Protection and Education fund authority has conducted an awareness campaign on Ponzi schemes, chit funds, and dubious crowdfunding projects.
Vipul Kharbanda, a non-resident fellow at the Centre for Internet and Society (CLS) said:
"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 illegal."
Indian Central bank and the Indian government said that cryptocurrency is not illegal in India.
The Indian government is taxing crypto income at 30% and has imposed a 1% tax deducted at source (TAX) on a crypto transaction.