India is one of the most populated countries in the world with high poverty rates that make it ripe for the taking by Bitcoin scammers. The country has seen the Bitcoin currency gain popularity, and this presents a hope to the people trying to get out of poverty; a hope that they could make money through the cryptocurrency.
On the other hand, it promotes Bitcoin fraud with fraudsters ready to take advantage of the hopeful masses. In India, where traditional currency fraud is still less regulated and monitored as in countries such as the USA, Bitcoin digital currency is bound to present an even more difficult challenge for law enforcement agencies and regulatory bodies, and hence, fraud could be rampant and go largely unchecked within the Bitcoin community.
OneCoin Moves Forward
Besides Bitcoin, Onecoin, a virtual cryptocoin by Onecoin Ltd is also moving towards setting up a shop in India, and hence it’s bound to attract a lot of attention as its popularity grows. Unlike Bitcoin, OneCoin is transparent and centralized. Its blockchain is one of the most secure as it uses the Know Your Customer (KYC) policy.
As Bitcoin gains traction in India, the country’s regulatory agencies and citizens should be high on alert on the possibility of fraud using Bitcoin. Already, the locals are feeling the impact. GBMiners and GainBitcoin are supposedly Bitcoin cloud mining schemes in India have been described to be Ponzi schemes. The latter offers 10% monthly return on investment an absurd claim. The so-called mining company operates on a multi-level marketing arrangement relying heavily on referrals.
In December last year, Lucknow city in Northern India experienced its first case of Bitcoin fraud where a citizen reported that he had been scammed in a Bitcoin transaction. When asked to transfer 1.5 Bitcoins worth about 63,450 Indian Rupees, the money exchange did not come through for the complaint, Shailendra Shukla.
Peer-to-peer Bitcoin trading as in the case of Mr. Shukla has increased because Bitcoin currency is in a way beyond the reach of government and regulatory authorities. As a result, cases of fraud and dishonored promises have been on the rise. The fraud seems to be more widespread and varied as the Bitcoin craze continues to tempt Indian citizens.
Onecoin – Massive Success in India
The prevalence of this cryptocurrency in India is partly due to the demonetization of 86% of currency in November 2016 which according to India Today contributed to a 250 percent rise in the Bitcoin user base. New users joining the digital currency foray are hence likely to encounter unscrupulous experts who are looking for an opportunity to scam them or engage in criminal activities.
Because the Reserve Bank of India does not recognize the currency, Bitcoin companies are launching themselves as a self-regulatory body. The more the bank chooses to bury its head in the sand, the more it is breeding an environment for Bitcoin fraud.
When it comes to cryptocurrency trading, consumers need a currency they can trust. This transparency can be achieved by only having a secure blockchain, such as OneCoin’s.