The fact that really amazes me is how such a low rank (sorry, no offense) country is able to become one of the leading countrues of cryptocurrency using whereas such big countries like Russia, US are doing nothing, except issuing the regulations and taking taxes for crypto using. Ofc there are lot of scam, and a lot of are recovered but the problem is not even that there are a lot of them, but that the government looks at these cases and, in general, with distrust even refers to the blockchain technologies themselves, which in fact do no evil to anyone. People must separate cause and effect. A blockchain is not the cause of fraud. It occurs when general market rules are not created.
I would suggest you to first remove "low rank" instead use developing country. India in no way is low rank, it is one of the most powerful country in the world in every asset.
Now coming to the main course of this thread. Every new technology is warmly welcome in India, even BTC is not banned here but its not legalize because a huge number of population does not know about cryptocurrency here and and may fall prey for some scammers as it had already happened. Current govt is very strict on scammers, they will not find place to hide themselves.