New Delhi: More than half of those polled in India are against legalizing cryptocurrencies, just as the government proposed a law to regulate their use and create an official digital coin, according to an opinion poll published on Wednesday.
The survey showed that 54% do not want the government to legalize cryptocurrencies, but instead tax them like digital assets held in a foreign country, pollster LocalCircle said. These findings were based on a survey of 56,000 people over the past 15 days.
Only 26% of those surveyed said that cryptocurrencies should be legalized and then taxed in India, while the remaining 20% had no idea, it said.
News of the preparation of a bill by the government to regulate digital coins triggered a sell-off on exchanges popular among Indian investors on Wednesday. Although the contents of the bill have not been finalized, a proposal to ban all private cryptocurrencies in India has been included.
“While many Indian citizens have invested in cryptocurrencies, the absence of a robust framework leaves investors open to higher risk. This is corroborated by the study findings as 71 per cent of the study respondents have little or zero confidence in it, LocalCircle CEO Sachin Taparia said.
Taparia said that advertisements on cryptocurrencies, platforms and exchanges do not adequately highlight the risks. The survey showed that 76 percent wanted advertising to be withheld until regulations were made.
Reserve Bank Governor Shaktikanta Das has previously said that even though the value of transactions in virtual coins has gone up, about 70%-80% of accounts have balances of less than Rs 2,000 ($27).
Other key points of the survey:
, About 87% of households have no one trading or investing in cryptocurrencies.
, Only 5% in favor of continuing to advertise the cryptocurrency platform.
, About 51% support India to launch its own digital currency managed by the RBI.
, 74% believe that crypto advertising is not effectively exposing the risks.
, Only 1% have confidence in cryptocurrencies.
(This story has not been edited by NB staff and is auto-generated from a syndicated feed.)