An outreach campaign to raise awareness of cryptocurrencies and online gambling will be started by the Investor Education and Protection Fund (IEPF).
The need for the outreach programme stems from the observation that, despite the recent unrest in the industry, both crypto-assets and online gaming (which includes gambling and betting) are still being promoted in a risky manner.
Since investing in cryptocurrencies is a difficult and dangerous endeavour, the programme will assist potential investors in thoroughly educating themselves before making any decisions.
It is run by the IEPF Authority, which was established in 2016 in accordance with Section 125 of the 2013 Companies Act. The IEPF is administered by the Authority, who is also tasked with raising investor awareness and paying out shares, unclaimed dividends, matured deposits, and other items to legitimate claimants.
In terms of investment education, the goal is to reach out to professionals, housewives, and household investors in both urban and rural areas and impart the fundamentals to them.
Primary and secondary capital markets, different saving instruments, investment instruments (such as mutual funds, equity, among others), educating investors about dubious Ponzi and chit fund schemes, and existing grievance redressal mechanisms are all areas of focus.
The cryptocurrency conundrum is caused by worries that the unregulated currency will have a destabilising impact on a nation's monetary and fiscal stability. Additionally, cryptocurrency exchanges in India are being looked into for their alleged involvement in illegal activities like drug trafficking, money laundering, breaking the law regarding foreign exchange, and GST evasion (Goods and Services Tax).
As of December 2022, the Prevention of Money Laundering Act Special Court had received four prosecution complaints, three people had been arrested, and Rs 907.48 crore had been attached or seized (PMLA).
Cryptocurrency is a poor choice for money laundering due to the immutable, open nature of the blockchain, which makes it easier for law enforcement to detect and trace money laundering than with cash transactions.
Legislation for the industry has been recommended by the Reserve Bank of India (RBI). It holds the opinion that cryptocurrencies ought to be outlawed.
For online gaming in India, the Ministry of Electronics and Information Technology (MeitY) has been designated as the nodal industry; for e-sports, the Department of Sports, which is part of the Ministry of Youth Affairs and Sports, has been designated as the nodal agency.
MeitY's proposed framework for central regulation is anticipated to address the sector's problems.
For instance, there is ambiguity surrounding the definitions of "games of chance," such as fantasy games, and "games of skill," a term used in the Public Gaming Act (1867) but not defined. Cybercrime also carries some risks. In a "game of skill," even though chance cannot be completely eliminated, the "element of skill" (the player's mental or physical skill) determines the game's outcome more so than random chance.
The Indian Constitution's Article 19(1)(g) clearly protects "Games of Skill" as legitimate commercial activities in a number of Supreme Court and High Court decisions. Additionally, the distinction between "Games of Skill" and "Games of Chance" has been emphasised by these rulings.
Online skill games have been subject to restrictions in a few States despite these court decisions because of addiction, monetary losses, and the fine line between skill and chance.
The only concern is that, given that IEPF has previously conducted awareness campaigns on ponzi schemes, chit funds, and dubious crowdfunding projects, the campaign may negatively portray cryptocurrencies. As was already mentioned, officials also intend to discuss how cryptocurrency is illegal in India and how it can be used for questionable purposes like money laundering. As a result, experts think that the messaging's tone and wording will be crucial.
¡°If the government takes a heavy-handed approach and starts saying things like virtual currency is not legal in India, that will not be entirely true. People may presume incorrectly that it is illegal,¡° Vipul Kharbanda, a non-resident fellow at the Centre for Internet and Society (CIS), said to The Hindu. ¡°One may be indulging in unlawful transactions like money laundering using crypto assets. But unlawful transactions can also be executed using legal banking channels as well,¡± he stated.
Thankfully, the IEPF has extensive knowledge of awareness campaigns. Since its establishment in 2016, this government organisation has managed nearly 65,000 awareness campaigns that have reached more than 30 lakh people. It is an investor-focused organisation that supports claimants with grievance redressal mechanisms, the refund of shares, unclaimed dividends, and other deposits in addition to conducting awareness programmes. Therefore, it is anticipated that the crypto awareness programme will place a strong emphasis on the needs of its users and should work to protect their interests.
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