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?
There are plenty of countries around the world that are already taxing cryptocurrencies in various way - it definitely is not a new development. Taxing an asset like this has nothing whatsoever to do with fraud - they are totally independent. Tax itself however was very lenient in the early years of cryptocurrency and many people got very rich while paying very little if they were able to cash out in a smart way. Lots of politicians and lawmakers are interested in capturing some of the money they see people making in the news every day and are coming up with all sorts of schemes for it. As we see when there are small rumblings related to taxation in America, it does put a little dent into things like Bitcoin, but it quickly recovers.