Rise in P2P Cryptocurrency Trading in India Accompanied by Surge in Scams: Experts Urge Caution
Summary:
P2P cryptocurrency trading in India has surged, but so have P2P scams. Scammers exploit unsuspecting sellers on popular platforms like Binance and WazirX, using stolen data to trick users into completing transactions with their own bank accounts. Police freeze the accounts of both scammers and innocent sellers, causing financial and legal consequences. Crypto experts urge caution and advise against P2P trading to avoid scams and potential legal trouble.
P2P cryptocurrency trading, which allows users to exchange cryptocurrencies directly without intermediaries, has been a long-standing practice in the crypto community. These decentralized exchanges offer advantages such as global accessibility, multiple payment options, and no transaction fees. They have particularly gained popularity in countries with hostility towards formal crypto exchanges, like India. In response to the lack of regulatory clarity and heavy taxation on crypto profits, P2P platforms have seen a surge in trading volumes. However, this increase in activity has also led to a rise in P2P scams. Scammers often use fake crypto channels on messaging platforms like Telegram to trick users into sharing their personal banking information. With stolen data, scammers create P2P accounts on popular platforms like Binance and WazirX, initiating buy orders and duping unsuspecting sellers. When victims realize they have been scammed, they report the incident to the police, resulting in frozen bank accounts for both scammers and innocent sellers. The lack of understanding about cryptocurrencies among law enforcement agencies exacerbates the problem, as they often resort to freezing accounts without proper investigation. Crypto experts in India advise traders to be cautious and recommend avoiding P2P trading altogether due to the prevalence of scams and potential legal consequences.
Published At
8/22/2023 1:01:00 PM
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