International Taxation Crypto ⁽⁷⁾

Recent news and analysis indicate that many Ponzi crypto apps are targeting and defrauding people in India. Many of these Ponzi cryptocurrency apps lure Indian customers and scam them by promising them high returns in short period of time.

First of all, What is 'Ponzi scheme' ?

Ponzi schemes are investment plans in which the owner or operating firm pays investors' returns from new cash raised from new investors rather than from the company's revenues. 

Crypto Ponzi schemes are crypto investment frauds that pay existing investors with funds collected from new investors. Crypto is a prime target for the masterminds of Ponzi schemes. Average investors do not fully understand the technology that crypto uses or how to evaluate a cryptocurrency as a sound investment. Unlike traditional investments where investors can dig into earnings, analyst research reports, audited documents and other required regulatory material, many crypto projects are unregulated and having anonymous founders is not unusual in the space.

Recently, In New Delhi, a group of investors were scammed into one of the largest 2022 India Cryptocurrency scam with a whopping sum of 500 crores rupees. All this was done on the promise of 200 percent returns on their investments. 

Aside from promising a 200 percent annual return on investment, these accused also promised their investors a 5-20 percent monthly returns, that were to be credited to the investors' bank accounts on the 5th, 15th, or 25th of every month, according to the testimony of the victims.

Arbitrage in cryptocurrency involves buying and selling assets across different markets to take advantage of price differences. It can be a profitable trading strategy, but requires expertise and careful consideration of fees, timing, and risks. Arbitrage in cryptocurrency refers to the practice of taking advantage…