Cryptocurrency is a digital currency that is capable of performing the functions of a real currency. It works using blockchain technology. Payments by cryptocurrencies take place without any interference from an authorized agency. This kind of decentralized structure enables them to exist outside the government’s and authorities’ control.
Cryptocurrency frauds have taken a quantum leap in India due to-
-The increase of investments by Indians in cryptocurrency and the lack of regulations.
Crypto frauds have become a popular way to trick people into sending money by using different ways.
Watch this LawWiser #InAMinute video where Rajat Pradhan, Principal Associate at Phoenix Legal explains and helps us understand the rise of crypto frauds in India.
In this video powered by Phoenix Legal, he explains cryptocurrency and the lack of legal framework regarding the disputes involved in its transactions.
He also shares insights on the current situation of crypto frauds in the country with reference to a recent case before a Delhi Court.
Introduction to Crypto
There has been a sudden rise that has been highlighting in the case of Cryptocurrencies in India.
People across the globe have heavily become dependent upon –
Making digital payments and investing with the use of cryptocurrencies in India.
For this reason, the popularity of Cryptocurrencies in India is on the rise.
As the use increases, crypto fraud cases are also at a peak as-
Various hackers and scammers have been active since the evolution took place in India.
Let us go in-depth about crypto fraud in India by first highlighting its crucial uses in today’s era.
Use of Crypto Currency in India
The use of Cryptocurrencies in India is not a new concept anymore because-
-People have started using them as a new mode of making payments for several purposes.
The fact that bitcoin is usable for trading can be one crucial reason for witnessing bitcoin fraud in India.
It is a part of traditional Indian economics that was very strong before the appearance of the internet.
The central bank of India has the strength of the Reserve Bank of India.
It is a significant thing to maintain the value of the Rupee.
To control the currency value, the central bank of India holds the flow of the currency of the nation.
In this way, it is essential for the people of India to know about-
– The role of the Reserve Bank of India.
The evolution of crypto fraud in India took place back in 2009, when cryptocurrency was introduced.
Creating a cryptocurrency in India was to create a platform where the ease of making payments through the internet could be normalized.
But with the introduction of bitcoin, the term “bitcoin fraud” also came forward as a shocking wave which further created a lot of buzzes around.
One reason for the hike in the cases of bitcoin fraud or crypto fraud is the rising popularity of trading in digital money, which offers the allure of multiplying your money.
For this reason, Crypto frauds have become a popular way to trick people into sending money by using different methods.
In the status of bitcoin fraud, we are witnessing a stressful concern.
As an answer, the UP Finance Minister quoted that the “quality of cryptocurrency may be uncertain in India, but the Indian Penal Code (IPC) and other laws are equipped to handle scams and frauds.
According to the latest stats, there have been cases where the Indian investors lost $500 million straightway as the scammers are increasingly controlling the market, resulting in crypto fraud.
There is no doubt how crucial digital payments have become in India as-
-The use of the internet in net transactions is relatively conventional and seamless.
However, as a matter of shock, there have been only some judgments that form the thread of crypto fraud cases that have taken place in India in a while.
Still, there has been no such ban or system that regulates it entirely or can protect the rights of Indian investors in that sense.
It is another asset class such as gold or real estate.
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