Indian government is reportedly planning to raise awareness around the Crypto Investors. The government-run Investor Protection and Education Fund Authority is set to bring this crypto educational campaign to make sure that people clearly know about the risks they could be exposing their finances to, by experimenting with crypto assets.
This step comes in the backdrop of the crypto industry currently going through a severe crypto winter with many companies having collapse under market pressure.
As per media reports :
Indian investors have stepping into the crypto rink despite the financial risks that are associate with the assets.
Back-to-back scams and hack attacks hitting crypto exchanges with daily fluctuations in asset prices can cost investors boatloads of their savings.
As per a report, India had over 115 million crypto investors, making for 15% of its massive population as of August 2022.
In September 2022, India surpass the US and Russia on the 2022 Global Crypto Adoption Index that was compile by blockchain research firm Chainalysis.
India had secure the fourth rank on the Index that had list the 20 nations where crypto adoption shows most growth.
The curiosity in the virtual digital assets industry has nudge the Indian government to take pro-active steps in safeguarding the interest of investors.
The finance ministry of India is currently working on formulating laws to govern the crypto industry. India did begin to tax crypto profits by 30% in 2022.
To keep a track of otherwise largely anonymous crypto transactions, the Indian government has also impose a 1% TDS on each transaction.
Under its ongoing G20 Presidency, India has call for an international collaboration to frame such crypto rules, that are applicable on a global level.
As per the International Monetary Fund (IMF), the return correlations of Bitcoin and the Indian stock market increased ten-fold in the post-pandemic world.
This is indicative of the limited risk diversification benefits of cryptocurrencies.
It remains unclear by when would India’s crypto awareness programme go live on the national level.