The Indian government has launched a campaign to increase investor awareness of the risks involved with crypto investment strategy and to inform them of the currency’s legitimacy in the country.
The initiative to increase cryptocurrency awareness in India
The Indian government is reportedly launching a ground-breaking push to raise public knowledge of cryptocurrency. It will be managed by the Investor Protection and Education Fund Authority, which reports to the Ministry of Corporate Affairs.
ET quoted a government official as saying:
The advertisement will draw attention to the fact that cryptocurrency trading is prohibited in India and that there are considerable risks involved. Any investment that promises customers high, guaranteed returns comes with considerable risk.
Since 2019, the Indian government has drafted 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 following financial disaster. Sitharaman noted that for either regulation or prohibition to be successful, international cooperation is necessary.
Since the Investor Protection and Education Fund Authority has supported awareness campaigns on Ponzi schemes, chit funds, and dubious crowdfunding initiatives, some people are worried that the Indian government’s bitcoin campaign may portray cryptocurrencies in a negative light. Bitcoin is not prohibited in India, according to the central bank and the Indian government.
The Indian government has implemented a 1% reduction in taxes on crypto transactions and is taxing cryptocurrency income at a rate of 30% despite the absence of any legal framework for cryptocurrencies.