Market News

Crypto Fraud in India Surges as Regulations Loom

In a striking revelation, the global crypto exchange MEXC has flagged a staggering 200% increase in crypto fraud, with India and Indonesia at the forefront.

The report highlighted 80,057 fraud cases in the first quarter of 2025, with India accounting for over 27,000 flagged accounts.

This marks a 17% rise in fraudulent activity compared to the previous year, emphasizing the need for improved financial literacy among investors.

Indonesia experienced an even more shocking surge, reporting a 1,303% increase in fraud cases, totaling 5,603 accounts.

Fraud tactics identified include market manipulation and wash trading, often perpetrated by over 3,000 coordinated syndicates.

MEXC also pointed to social media influence as a major factor, where fraudsters utilize platforms to promote deceptive trading schemes.

In response to the growing threat, MEXC has announced initiatives aimed at educating users about identifying and avoiding scams.

Simultaneously, India is set to release a discussion paper that could clarify its cryptocurrency regulations and potentially address issues like taxation.

The anticipated reforms are driven by a broader push for legal clarity, especially after pressure from the Supreme Court of India to update the existing framework.

As India navigates its regulatory landscape, users must remain vigilant against rising fraud while also engaging with emerging opportunities in the crypto space.