Government Conducts Awareness Campaign for Crypto Investors: Report

The Indian government, which is still quite skeptical about letting citizens immerse themselves in the crypto sector, is reportedly planning to raise awareness about the volatile industry. The government-run Investor Protection and Education Fund Authority will be running this crypto education campaign to ensure people know exactly what risks they could be exposing their finances to by experimenting with crypto assets. The move comes amid the crypto industry is currently going through a severe crypto winter, with several companies collapsing under market pressure.

“The campaign will highlight that cryptocurrencies are not legal in India and that such assets also carry great risks. Any investment that promises people lucrative and secure returns carries a high level of risk,” media reports quoted officials familiar with the matter, it said.

Indian investors have jumped into the crypto orbit despite the financial risks associated with the assets. back to back fraud and hacking Beating crypto exchanges along with daily fluctuations in asset prices, investors can cost boatloads of their savings.

acc a KuCoin reportIndia had over 115 million crypto investors, which represented 15 percent of its massive population as of August 2022.

In September 2022, India overtook the US and Russia in 2022 Global Crypto Adoption Index compiled by blockchain research firm Chainalysis. India had secured fourth place on the index, which listed the 20 nations where crypto adoption showed the most growth.

The booming curiosity in the virtual digital assets Industry has urged the Indian government to take proactive steps to safeguard investors’ interests.

The Treasury of India is currently drafting legislation to regulate the crypto industry. India started it Tax crypto profits by 30 percent over the past year. In order to keep track of otherwise largely anonymous crypto transactions, the Indian government has also imposed a one percent TDS on every transaction.

Under its running G20 PresidencyIndia has called for international cooperation to formulate such crypto rules applicable on a global scale.

According to the International Monetary Fund (IMF)Bitcoin and Indian stock market return correlations have increased tenfold in the post-pandemic world. This is an indication of the limited risk diversification benefits of cryptocurrencies.

For now, it remains unclear by when India’s national-level crypto awareness program would go live.