Crypto & online gaming awareness campaign soon to be rolled out by govt

As cryptocurrencies are extremely volatile, it is necessary to educate the general public about the risks involved. Hence, the Indian government is planning to launch an outreach program to create awareness on the same.

By Jasmine Anand:

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 (IPEF), 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 illegal as well as unregulated. Moreover, these digital currencies have a destabilising 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.