A Peek Inside India’s Crypto Awareness Campaign

But at the same time, cryptocurrencies are known to be highly volatile. The prices of these digital assets can fluctuate significantly over a matter of days or hours. Not to mention, the space is also fraught with fraud, massive collapses like his FTX and Terra Luna meltdowns last year, and many other risks.

This high-risk, high-reward combination can make cryptocurrencies an attractive yet dangerous playground, especially for novice investors.

With this in mind, the Indian authorities plan to launch a virtual currency and online gaming awareness campaign to educate citizens about these activities and the risks associated with them. It is administered by the Investor Protection and Education Fund (IPEF) administered by The first awareness campaign of its kind is expected to cover the legal status of cryptocurrencies, the dangers of online gambling/betting, and the risks of putting money into these platforms.

“The campaign highlights that cryptocurrencies are not legal in India and that such assets carry serious risks. Investments where people are promised favorable and guaranteed returns carry a high degree of risk. There are elements of that,” said the senior government official, as quoted in the ET report.

Both the cryptocurrency and gaming sectors have long faced scrutiny from Indian lawmakers. For example, in July 2022, Finance Minister Nirmala Sitharaman informed the Reserve Bank of India (RBI) of his concerns about cryptocurrencies, stating that cryptocurrencies would be banned as they could destabilize the country’s financial and financial stability. said it should. Recently, the RBI cracked down on cryptocurrency exchanges across the country for allegedly engaging in money laundering in excess of Rs. 1,000 kroner.

And finally, in February 2022, the government imposed a hefty tax of 30% on cryptocurrency profits and a TDS of 1% on all cryptocurrency transactions.

Despite these obstacles, declining crypto valuations and the collapse of several large crypto companies, retail investors continue to flock to Indian cryptocurrencies. It highlights the need for an appropriate regulatory framework to protect against potential losses. India’s long-pending crypto policy is one such framework. However, it is still in development and will be finalized after international cooperation and risk assessment.

Until then, upcoming cryptocurrency and online gaming awareness campaigns may be of unparalleled importance. Appropriate regulations are drawn out and enforced while helping control the risks and losses faced by cryptocurrency investors and online gamers. Thus, some market experts welcomed the awareness campaign. “Investing in cryptocurrencies can be a complex and risky endeavor as it is highly volatile and works around the clock. It is important to educate yourself on hindu.

The only concern, however, is that the IPEF has previously conducted awareness campaigns on Ponzi schemes, chit funds, and dubious crowdfunding projects, and that this campaign could mishandle cryptocurrencies. . Additionally, as mentioned earlier, the authorities will elaborate on the illegality of cryptocurrencies in India and discuss how they can be used for questionable activities such as money laundering. Therefore, experts believe that the tone and wording of your message will be of utmost importance.

“Even if the government takes a heavy-handed approach and starts saying things like cryptocurrency is not legal in India, that is not entirely true. People may mistakenly assume that it is illegal.” said Vipul Kharbanda, Non-Resident Fellow of the Center for Internet and Society (CIS). hindu“We may indulge in illegal transactions such as money laundering using cryptocurrencies. However, illegal transactions can also be carried out using legitimate banking channels,” he explained. did.

Fortunately, IPEF has extensive experience in awareness campaigns. Established in 2016, the government agency has overseen approximately 65,000 awareness programs reaching more than 30 million citizens. It is an investor-focused institution that not only conducts awareness programs, but also provides a mechanism for petitioners to file complaints and assists in the refund of shares, unclaimed dividends, and other deposits. As such, crypto-aware programs are expected to be very customer-centric and should help protect the interests of crypto investors.