(MENAFN– Khaleej Times) The victim of a digital asset scam can only avail of the provisions of the Indian Penal Code which covers the crime of cheating, breach of trust, etc By H. P. Ranina/ N.R.I. Problems
Published: Sat 5 Mar 2022, 5:51 PM
Question: One of my friends in the Gulf was recently swindled when he invested in certain crypto assets based on ‘tips’ received from so-called experts. Some friends in India have also been duped in recent times. What warnings have been issued by regulatory authorities to prevent such frauds?
Answer: The Reserve Bank of India has been cautioning the public about investing in crypto assets for the past many years. In the absence of any legal framework for crypto currencies, there is no investor protection mechanism as it is for stock market investors who are protected by regulations of the Securities & Exchange Board of India. Therefore, the victim of a digital asset scam can only avail of the provisions of the Indian Penal Code which covers the crime of cheating, breach of trust, etc. Many gullible investors fall prey when they are offered a guaranteed return on investment. Most of these investors are targeted through social media Apps which offer investment tips and persuade persons to open an account on a specified platform. There is also a risk of fraud if a person has a digital wallet where he stores his Bitcoins or non-fungible tokens. These wallets are sometimes hacked. It is the…
