Crypto currency: According to media reports, Anil Singh Chauhan, a retired banker from Kanpur, lost a big crypto fraud in the name of cryptocurrency trading, lost Rs 2.52 crore in less than a month. It included his lifetime savings, taken loans and even family jewelery. In Anil’s case, a stranger’s message turned into chat. Then the process of video calls started and then the greed to earn money quickly. In this way, Chauhan trusted an app, but in return he got the economic waste.
Investors like Chauhan do not have much legal options in a country like India with a lack of crypto regulation. This story of Chauhan is not the only story of investors wastage. This is a sign of India’s sensitivity to a financial threat that should have been stopped long ago.
Lack of crypto regulation in the country has also not reduced investors enthusiasm. Crypto business in the country is continuously flourishing and it is not limited to big cities. Crypto’s craze is increasing in Tier 2 and Tier 3 and even small cities. According to media reports, millions are being traded in bitcoin, atherium, solana and other such tokens.
Crypto is sold as a future currency, but in reality it is a speculative casino where the dice always runs against the small savior. In fact, the Reserve Bank of India (RBI) has been warning for many years. RBI has been saying for years that cryptocurrency has a big role in money laundering, promoting terrorism and tax evasion. The RBI has also been saying that it cannot protect the system that does not control it. RBI Governor Sanjay Malhotra has clearly stated that Crypto is not a currency, there is no asset nor is there any thing that should get legitimacy.
An estimated more than two crore people in the country are associated with Crypto. The financial literacy level of many of these people is not very good.
In 2022, the government imposed 30 per cent tax on crypto with 1 per cent of TDS without giving any security to investors. This gave a kind of official approval to Crypto without any regulation. Exchanges in the country were not given any license for Crypto. No KYC is done. The victims against Crypto Fraud have no support other than the FIR, which does not have any result. If compared to SEBI’s equity, there is no regulator for crypto. There are only wolves here.
Talking about other countries of the world, the EU has rules related to disclosure, reserve funds and anti -money laundering for the crypto market. It is mandatory to follow them. Even in the United States, where the leading rules regarding crypto are applicable, the crypto mediators are found to be examples of prosecution and punishment.
India is in a situation where neither the crypts nor the regulators are being regulated, which is causing losses to investors like Chauhan. Then what is the solution? India will have to either ban Crypto completely or bring it under strict rules. In a country where basic financial literacy is still developing, Crypto is an organized gamble wrapped in blockchain cover. Inactivity made about this means wiped out every day, wastage of another house.