A recent Chainalysis report reveals that Indians visited websites hosting crypto scams 9.6 million times in 2021. This is actually a drop from 2020 when the figure was 17.8 million.
As the crypto market grows ever more popular in India, an increasing number of the country’s citizens are visiting crypto scam websites. A recent report by blockchain intelligence firm Chainalysis revealed that Indians visited crypto scam websites 9.6 million times in the last year.
However, there does appear to be some awareness spreading concerning crypto scams, as the figure has dropped from 2020’s value from 17.8 million visits. The interest in cryptocurrencies has taken off in the past two years and continues to grow as exchanges as WazirX and CoinDCX grow.
Cryptocurrency fraud has been on the rise in India, with many scam operation rings busted. The country’s authorities have doubled down on their efforts to prevent fraud as India’s blockchain and cryptocurrency industry grows.
The country’s youth is particularly enthusiastic about cryptocurrencies, with several reports indicating that the age group is driving investments in the asset class. Indian banks have taken a strong stance against the asset class, with many investors receiving emails warning them against investment.
Malicious attacks have also targeted high-profile individuals in the country. India’s own Prime Minister Narendra Modi had his Twitter account hacked, with the attackers posting fraudulent tweets related to bitcoin. This has happened in the market before — the 2020 Twitter account hijacking that promoted a bitcoin scam was a major incident, affecting the accounts of Barack Obama, Joe Biden, Bill Gates, and several companies.
Crypto scams key reason behind tough regulatory scrutiny
India is, as of yet, undecided on cryptocurrency regulation. It appears that a regulatory framework is in the works, though there have been talks of a complete ban in the past. There has been no update on this matter since headlines emerged in the last quarter of 2020.
The rise of scams will play a significant part in the actions taken by Indian authorities. The Securities and Exchange Board of India will likely regulate the crypto market.
In any case, 2022 will see some form of announcement concerning the status of crypto in India arrive. For the estimated 15 to 20 million crypto investors in India, that should bring a sigh of relief, as the rumors are trending towards regulation, not a ban.
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