Only 26% of the respondents to the survey said cryptocurrencies should be legalized.
New Delhi: More than half of those surveyed in India are against legalizing cryptocurrencies, according to a poll released on Wednesday, just as the government proposed a law to regulate the use of cryptocurrencies. use them and to create a full-fledged digital currency.
The survey found that 54 percent do not want the government to legalize cryptocurrencies but instead tax them as digital assets held abroad, pollster LocalCircles said. The findings are based on a survey of 56,000 people over the past 15 days.
Only 26% of the respondents said cryptocurrencies should be legalized and then taxed in India while the remaining 20% had no opinion, it said.
News of the government preparing a bill to regulate digital currencies sparked a sell-off on exchanges popular with Indian investors on Wednesday. Although the text of the bill has not been finalized, a proposal to ban all private cryptocurrencies in India has been included.
“While many Indian nationals have invested in cryptocurrencies, the lack of a solid framework puts investors at high risk. This is confirmed by the study results as 71% of study respondents have a low or zero level of confidence in it,” said Sachin Taparia, managing director at LocalCircles.
Taparia said the advertisements on cryptocurrencies, platforms and exchanges do not adequately highlight the risks. The survey found that 76% want advertising to be kept until the regulations are in place.
Reserve Bank Governor Shaktikanta Das previously said that although the value of transactions in virtual currencies has increased, about 70%-80% of accounts have balances of less than 2,000 rupees ($27).
Other key takeaways from the survey:
* About 87% of households do not have anyone trading or investing in cryptocurrencies.
* Only 5% support the continuation of advertising on crypto platforms.
* Around 51% are in favor of India implementing its own digital currency regulated by the RBI.
* 74% believe crypto advertising does not effectively highlight risks.
* Only 1% have high confidence in cryptocurrencies.
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
