To ensure a safe trading space for such crypto investors, The government may allow the use of crypto as assets in the country, though this use might be taxed for the first time ever. This means people in India may be able to buy or sell crypto currencies as shares, gold or bonds.
Does this tax system help investors to save from froud?
I think it's not about fraud but it's about the government of India giving the go-signal about crypto if they're going to tax it. Although I do get that there's protection from the state if they're regulating the crypto market into their jurisdiction then, that's probably where your question lands. As the first impression of imposing taxes in crypto, we don't like it. But with a country like India that has been going forward and backward about its status with crypto, it's acceptable to be happy with such news.