The campaign will emphasize that cryptocurrencies are illegal in India and that there are significant risks associated with holding such assets. There is a substantial risk component to any investment where the public is given the promise of lucrative and certain returns. Since 2019, the Indian government has been developing a cryptocurrency policy; however, nothing has been set in stone. The G20 members would be invited to a discussion on cryptocurrency regulation, according to Indian Finance Minister Nirmala Sitharaman.
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 next financial disaster. Sitharaman noted that for either regulation or prohibition to be successful, international cooperation is necessary.
Vice President at the Indian cryptocurrency exchange Wazirx, Rajagopal Menon, said that: Investing in cryptocurrencies can be difficult and dangerous because the market is so volatile and active all the time. Before making any decisions, prospective investors should fully inform themselves. Given that the Investor Protection and Education Fund Authority has run awareness campaigns on Ponzi scams, chit funds, and dubious crowdfunding initiatives, some people are worried that the Indian government’s crypto campaign may present 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% tax deducted at source (TDS) on cryptocurrency transactions and is taxing cryptocurrency income at a rate of 30% despite the absence of any legal framework for cryptocurrencies.
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