This development comes as many small and retail investors in the country are continuing to invest in cryptocurrencies, despite the recent market turbulence and steps undertaken by the government to discourage the asset class.
It has also been observed the gaming platforms are offering products that may be construed as gambling and the same are even being advertised as ways for people to make extra money, said the official. “The campaign will highlight that cryptocurrencies are not legal in India and there are also deep risks involved in such assets. Any investments where the people are being promised lucrative and assured returns, there is an element of high risk,” the official added.
This is the first time that the IPEF is conducting a campaign on digital assets. Normally, it undertakes initiatives that create awareness on investing in public markets. But now, the IPEF is changing its strategy by targeting various asset classes and covering all sorts of Ponzi schemes.
“While cryptocurrencies may be a bigger risk in the urban circles, the rural population is vulnerable to a different set of Ponzi schemes like collective investment schemes or chit fund frauds,” the official said. “Rather than one size fits all, the IPEF will adopt a targeted approach to create awareness about various Ponzi or high-risk investment instruments.” Globally, the prices of cryptocurrencies have fallen significantly in the recent past from their peaks. Bitcoin — the most popular cryptocurrency – has crashed 64% during 2022. Some of the lesser-known currencies have crashed even steeper. However, some crypto exchanges are learnt to be pitching these falls as a good opportunity for buying more crypto assets.
One of the key differences between regulated investment assets like shares or public bonds compared to unregulated ones such as crypto currency is the safety net offered by the regulators. Regulatory bodies including the Securities and Exchange Board of India, the Reserve Bank of India and the Ministry of Corporate Affairs have certain regulatory supervision over asset classes like shares or bonds.
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