In the Indian state of Uttar Pradesh on 8 December, it was disclosed a fraudulent scheme, working on cryptocurrency exchanges. Operational rapid response team of Uttar Pradesh (STF) arrested the initiator of the scheme Agada Mohd (Mohd Azhad) in Lucknow. The exposure in Uttar Pradesh – opened the first large-scale cryptocurrency Scam in the country.
Fraud was revealed after businessman Pankaj Garg (Pankaj Garg) reported suspicious activity to the STF. It is unclear how many victims have suffered from this Scam.
It is reported that scammers have created multiple accounts on the websites of cryptocurrency exchanges and has offered to sell the bitcoin in exchange for the money sent by Bank transfer. To prove their good intentions, they did make a small transaction. However, when customers placed larger orders, the fraudsters requested the money and then not sent them bitcoins. To track criminals using Bank accounts was impossible, since they used fake IDs.
Similar story on the image of bitcoin in India, the government of which fear the impact of cryptocurrencies on the financial environment. Central Bank of India (RBI) has made several cautionary statements that are not recommended the use of virtual currencies. In a press release issued in December 2013, RBI emphasized that cryptocurrencies pose potential risks, «financial, operating and legal protection of customers and their safety.» Since then, RBI has issued several warnings of a similar nature to the previous one dates back to 5 December 2017.
RBI has emphasized that it does not issue licenses or permits of any company in the cryptocurrency environment on the implementation of financial operations. The position of the Central Bank is very clear — if someone is dealing with digital currencies in India, they do so at their own risk.
For anybody not a secret that the cryptocurrency market is full of fraudulent companies designed to take advantage of the credulity and ignorance of community members. In an effort to combat this, governments around the world use various methods to prevent fraudulent transactions.
Earlier in the year 2017, the Commission on securities and exchange Commission (SEC) announced that it is closely monitoring the market and illegal actions on it. On the other hand, in September 2017, China announced a complete ban of holding ICO and made all cryptocurrency exchanges in the country to stop working.
It remains unclear whether disclosed fraudulent scheme and other
crimes in the Indian cryptocurrency environment on the government of India, forcing him to act according to the Chinese script, or the regulators would prefer not to limit innovation, but to support them, as do countries such as Switzerland