Crypto Trading: A large network of fraudsters is operating in the name of crypto trading. Scams related to crypto trading keep coming to light every day. Many big scams have come to light in India in recent times. Due to this, not only the savings of thousands of people have been lost but their dreams and future have also been ruined.

Crypto Trading: Crypto trading has certainly opened up new investment opportunities for Indians, but with this, cases of fraud have also increased. The picture of the legal framework of crypto in India is not clear. This is giving a free hand to fraudsters. Innocent investors are lured by promises of big earnings, and many fake schemes are sinking people's hard-earned money. If this trend is not stopped, it can become a serious threat to India's financial stability. The foundation of these scams rests on a very simple but dangerous trick, that technique is… Old investors are paid with the money of new investors. As long as this flow of money continues, everything seems fine. With the help of big claims on social media, fancy events and finfluencer promotions, people are assured that this is a great opportunity. But the reality comes out when new investors stop coming. Suddenly the whole structure collapses, and most people lose their deposited capital.

The guarantee of high returns is a warning bell

If you are wondering how to identify such schemes, there is a simple way—if someone is promising you guaranteed high returns, then alarm bells should ring. No real investment is without risk. Also, if a project is avoiding transparency, entangling you in complex jargon, or repeatedly insisting on adding new people, then you should be careful. And most importantly—if a platform is being operated by an unknown or foreign entity, then trusting it can be costly.

Thousands of people have lost their capital

Recently, many big scams have come to light in India, which not only drowned the savings of thousands of people, but also destroyed their dreams and future. In the Gain Bitcoin scam, investors were lured with huge profits every month in the name of Bitcoin mining, but it turned out to be a classic Ponzi scheme, which defrauded more than Rs 2,000 crore. Similarly, the Bitconnect scam drowned billions of rupees worldwide, in which many innocent investors from India also got trapped.

These fraudsters target such people

These scams not only loot people's savings but also shatter their trust. The most worrying thing is that they target those who are already looking for a financially secure future, including retired elderly, working people and those who dream of making quick money. Now this danger is not limited to big cities only. Recently such schemes have reached Ladakh, Odisha and small towns of the Northeast, where due to lack of awareness people easily fall into their trap, which shows how much this danger is spreading.

Need for crypto regulatory framework in the country

The rising number of cases of these schemes makes one thing clear: India urgently needs a robust crypto regulatory framework. Currently, the legal uncertainty surrounding crypto is giving a free hand to fraudsters, leaving investors vulnerable. A well-organised regulatory system should perform three key functions—bring crypto exchanges and investment platforms under proper registration and monitoring, enforce transparency in investment strategies and risk disclosures, and ensure strict penalties against fraudsters.

Singapore has implemented a licensing system for crypto exchanges, the EU has taken the initiative to monitor the sector under the MiCA regulation, and the UK’s Financial Conduct Authority is working on clear guidelines. Even the US has established a regulatory framework. By studying these models, India can create policies that promote innovation but also ensure investor protection. Crypto Ponzi schemes are posing a serious threat to India’s financial stability. If concrete steps are not taken immediately, more people will continue to fall prey to them. It is time for regulatory bodies to provide clear direction to this industry. With the right policies, India can create a safe and advanced crypto ecosystem—one that encourages innovation and protects its citizens from financial ruin.