In Short
-
Crypto currencies are extremely volatile and risky
-
Indian government will soon launch a campaign to create awareness about cryptocurrencies and online gaming
-
For this, it has roped in IPEF which comes under the Ministry of Corporate Affairs
The government of India will soon initiate a campaign to create awareness about cryptocurrencies and online gaming. IPEF, i.e., the Investor Protection and Education Fund, which comes under the Ministry of Corporate Affairs, will launch an outreach campaign, educating people about the legal status of cryptocurrencies and online gaming platforms as well as highlighting the risks of putting money into such assets and platforms.
What is IPEF?
The Investor Education and Protection Fund, which was set up in 2016, under section 125 of the Companies Act, 2013, promotes awareness among investors and offers refunds of shares, unclaimed dividends, matured deposits, etc. Apart from focusing on areas like primary and secondary capital markets, IPEF helps investors to become aware of dubious Ponzi and chit-fund schemes and offers knowledge about the existing grievance redressal mechanisms.
Why the need for crypto education?
We all know that in India, cryptocurrencies are unregulated. Moreover, these digital currencies have a destabilizing effect on the monetary and fiscal policy of the country. Further, the absence of proper knowledge on the same may invite deep risks.
Also, crypto exchanges across the country are being investigated for their alleged involvement in illegal practices like money laundering, and drug trafficking, among others.
Hence, it is vital for potential investors to thoroughly educate themselves before foraying into this field as cryptos are extremely volatile and risky.
‘Any investments where the people are being promised lucrative and assured returns, there is an element of high risk,’ cites a government official. He further opines that the lawmakers have also observed that the gaming platforms are offering products that may be construed as gambling. Furthermore, such platforms are even being advertised as ways to make extra money.
As far as investment education is concerned, IEPG aims to educate home investors, housewives, and professionals alike in rural and urban areas and teach them the basics. It is pointed out that by October 2022, IEPG had conducted over 65,000 awareness programs covering three million citizens
Bitcoin has the best risk-reward profile of any of the major cryptocurrencies, making it a great rebound candidate in 2023. Down more than 65% in 2022, Bitcoin (BTC 0.42%) has become an increasingly polarizing cryptocurrency.
What is the best crypto to buy right now?
Bitcoin has the best risk-reward profile of any of the major cryptocurrencies, making it a great rebound candidate in 2023. Down more than 65% in 2022, Bitcoin (BTC 0.42%) has become an increasingly polarizing cryptocurrency.
Is crypto taxable?
Cryptocurrency is taxable when you sell it, or if you earn it as income. You report your transactions in U.S. dollars, which generally means converting the value of your cryptocurrency to dollars when you buy, sell, mine, earn or use it
What are the risks of cryptocurrency?
A cryptocurrency's value can change constantly and dramatically. An investment that may be worth thousands of dollars today could be worth only hundreds tomorrow. If the value goes down, there's no guarantee that it will rise again. Nothing about cryptocurrencies makes them a foolproof investment.
Is it too late to invest in crypto?
To be clear, it's not literally too late to invest in cryptocurrency. In fact, it's never been easier, and you can start building a crypto portfolio in about five minutes.
You must be logged in to post a comment.