CRYPTO AWARENESS CAMPAIGN - GOVERNMENT SCHEME

News: Explained | What is the crypto awareness campaign?

 

What's in the news?

       The Investor Education and Protection Fund (IEPF) will launch an outreach programme soon to create awareness of cryptocurrencies and online gaming.

       The need for the outreach is based on the observation that both crypto-assets and online gaming (that extends to gambling and betting) are still being promoted in a risky manner despite the recent turmoil in the sector.

 

Investor Education and Protection Fund (IEPF):

       The Investor Education and Protection Fund (IEPF) is managed by the IEPF Authority, which was set up in 2016 under the provisions of Section 125 of the Companies Act, 2013.

       The Authority is entrusted with the responsibility of administration of the IEPF, which, besides promoting awareness among investors, makes refunds of shares, unclaimed dividends, matured deposits and debentures and so on to rightful claimants.

 

Why is there a concern about cryptocurrency?

       The crypto dilemma stems from concerns about the unregulated currency having a destabilizing effect on the monetary and fiscal stability of a country.

       Further, crypto exchanges in India are being investigated for their alleged involvement in unlawful practices such as drug trafficking, money laundering, violating foreign exchange legislation and evasion of GST.

       The Reserve Bank of India (RBI) has recommended framing legislation on the sector. It is of the view that cryptocurrencies should be prohibited.

       Crypto assets are by definition borderless and therefore, any legislation (for regulation or for banning) would require international collaboration to prevent regulatory arbitrage.

 

What about online gaming?

       The Ministry of Electronics and Information Technology (MeitY) has been appointed the nodal industry for online gaming in India for e-sports.

       The nodal agency is the Department of Sports, under the Ministry of Youth Affairs and Sports for e-sports.

       A proposed framework for Central regulation by MeitY is expected to address issues faced by the sector.

       For instance, there is confusion about the definitions of a ‘game of chance’ like fantasy games, and a ‘game of skill’, a term which has been used in the Public Gaming Act (1867) but has not been spelt out.

       There are risks from cybercrimes as well.

       The online gaming industry has become increasingly concerned with the menace of offshore illegal gambling websites that provide their services and rampantly advertise to innocent Indian users, often masquerading as legitimate gaming platforms.