The idea to approach other countries for regulatory cooperation is especially appropriate in light of the frauds discovered in the cryptocurrency industry, which are not limited by national boundaries.
Source: The Hindu
The arrest of two state-owned kingpins and their accomplice, a former HP cop from Punjab, helped the Himachal Pradesh Police uncover a significant swindle. The scam is thought to be around $400 million, and thousands of people from the state and beyond have been defrauded of their money while investigations into the case are ongoing.
Their strategy was to entice individuals to invest in the ‘Korvio Coin’ cryptocurrency by promising them lucrative returns, much like in a Ponzi scheme. By promising great returns to the initial few investors and then yanking the rug out from under them, the multi level chain marketing system allowed the con artists to defraud trusting clients.
Source: WION
It is crucial to frame regulatory processes for both the digital currency and this type of financial transaction. Scams can be reduced by promoting international coordination, information exchange, and adherence to FATF (Financial Action Task Force) regulations for crypto assets. The abrupt collapse of FTX, one of the biggest cryptocurrency exchanges in the world, last year has left tens of thousands of investors around the world still reeling from the multi-billion dollar effect. We must take corrective action immediately.
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