crypto trade went wrong for an Indian, lost US$267,000: offline crypto Scam

An Indian crypto trader got beaten and robbed by the second party of a crypto deal. 

Vinay Jain, an auto part dealer Indian citizen, was trying to buy crypto from a person through the offline deal, obviously to remain away from any kind of tax system but went wrong. 

Person, who promised to give crypto to his crypto wallet, scammed and robbed Vinay Jain. First, he beat Vinay and after that, he ran away with his funds (2 crore INR which is approximately $268,000).

Vinay Jain explained the whole incident and said that he lost that amount of money that he saved for his family. But this incident wasted all his savings. 

Reportedly local police received a call of an armed robbery, but the victim was not found on the day of the call, which is a very usual thing in India because of lazy police department action against any such situations. 

Crypto scam in India

Due to the absence of any specific rules in India over the crypto industry, the majority of people try to buy- sell assets anonymously to remain away from any kind of legal hurdles. 

According to the data of Chainalysis, Indian citizens visited 17.8 million times on crypto scam websites in 2020. While India visited 9.6 million times on crypto scam websites in 2021, these things are showing that people are now getting better education about crypto and trying to remain away from scams. 

single hope for the Indian crypto community 

A few days ago, Indian finance minister Nirmala Sitharaman announced tax rules on crypto with the provision of 30% net tax on revenue generated through crypto trading and also 1% TDS on transactions. 

These things are showing that India is considering bringing rules and regulations on the crypto industry but still some officials citing this matter more closely say that people should remain ready for crypto ban also because taxation on the crypto income doesn’t mean that crypto is recognized as a legal asset in India.

However, 30% tax on the income from the Indian government is very high and also there are still many questions on this rule to figure out how a crypto trader can pay tax under the rapid buy and sell conditions with 1% TDS charge. 

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