Now my question is that in my country, crypto is not legalized, so in case if anyone is scammed through P2P, we can't take up this matter in the legal court because the country does not recognize the transactions of crypto in the first place.
Scenario 1
Your country did not legalize bitcoin and has also laws to punish bitcoin users. This is just like your own country. In this scenario, the scammers have free hands to operate and it is assumed only those breaking the law by using bitcoin would be scammed.
Scenario 2
Your country doesn't legalize cryptocurrency and at the same time does have anything against the citizens using the cryptocurrency.
In this case, the scammers would be tried as in the normal case of scam.
Scenario 3
Your country making bitcoin a legal tender. In this case, the scammers should be in a mess if caught.
Does this gives a free hand to scammers as they know that they cannot be punished by a court of law 
Yes, if it is scenario 1.