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.