India's CBI Warns Crypto Users About Risks of Peer-to-Peer Trades
India's Central Bureau of Investigation (CBI) has issued a warning to cryptocurrency users about the risks associated with peer-to-peer (P2P) trades settled through Unified Payments Interface (UPI). The agency warned that buyers offering above-market rates for USDT, often a sign of dirty money looking for a clean exit, can turn ordinary sellers into fraud suspects.
The CBI advised users to stick to FIU-registered exchanges and avoid Telegram/WhatsApp deals. It also cautioned against accepting third-party payments, citing the risks of unwittingly becoming involved in money laundering schemes.
A recent scam in Tamil Nadu highlighted the dangers of P2P trading, with 17 arrests made and 13 accounts frozen after a ₹400-crore case was uncovered. The CBI has pointed users to its helpline (1930) and website (cybercrime.gov.in) for guidance.
The agency's warning marks a shift in focus from regulating exchanges to educating individual users about the risks of P2P trading. By doing so, it aims to reduce the number of account freezes triggered by chargeback complaints and push volume off informal P2P desks toward regulated venues.