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Dilip Chenoy, chairman of Bharat Web3 Association, speaks about the crypto industry’s role in strengthening investor education and fostering a responsible crypto ecosystem.
Dilip Chenoy, chairman of Bharat Web3 Association (BWA).
CoinDCX has launched Crypto Literacy Week as a flagship annual initiative aimed at promoting responsible participation and empowering investors to make informed decisions. In an interview, Dilip Chenoy, chairman of Bharat Web3 Association (BWA), spoke about the industry’s role in strengthening investor education and fostering a more responsible and transparent crypto ecosystem in the country.
What are the first three things a consumer should do before investing in crypto assets?
Before investing, consumers should begin with verification. They must ensure that the exchange or Virtual Digital Asset Service Provider is registered with FIU-India and complies with KYC norms. A platform that does not require identity verification or lacks transparency about its regulatory status should be treated with caution. The second step is independent research. Consumers should not rely exclusively on social media posts, messaging groups, or influencer endorsements. They should review the project’s documentation, understand its stated use case, and assess whether the claims being made are commercially and technologically plausible.
Finally, individuals should evaluate their own financial capacity and risk tolerance.
Crypto-assets are volatile, and participation should be limited to discretionary funds rather than borrowed money or essential savings. As an industry body, we also believe exchanges must actively commit to sustained investor education initiatives, and it is encouraging to see platforms such as CoinDCX institutionalising efforts like an annual Crypto Week; broader industry participation in such initiatives is essential to strengthen consumer protection.
Many frauds originate on messaging apps and social media. How should consumers respond to such approaches?
Unsolicited investment messages should be treated as high risk by default. Fraudulent actors frequently use Telegram, WhatsApp, Instagram, and similar platforms to promise guaranteed returns or exclusive early access opportunities. Legitimate platforms do not require direct messages to attract investors. If a communication creates urgency, pressures immediate transfers, or insists on confidentiality, consumers should disengage. Any verification must be conducted independently through official websites and publicly listed contact details rather than through links or numbers provided in unsolicited messages.
What cybersecurity practices are essential for crypto users?
Certain security practices are non-negotiable. Private keys and seed phrases must never be shared under any circumstances, as they provide complete control over digital assets. Exchange accounts should be protected with strong, unique passwords and multi-factor authentication. Consumers should avoid accessing wallets or trading accounts through public Wi-Fi networks, as such networks increase vulnerability to interception. Devices and applications must be regularly updated to address known security vulnerabilities. Additionally, users should carefully verify website URLs to ensure they are not interacting with phishing sites designed to mimic legitimate exchanges. In most cases, asset losses occur due to compromised credentials rather than technological failure.
What are the most common red flags consumers should watch for?
Certain indicators consistently signal elevated risk. Promises of guaranteed or risk-free returns are incompatible with the volatility inherent in digital assets. Claims of insider information, time-bound exclusive access, or unusually high returns with minimal risk should
be approached with skepticism. Platforms that lack visible customer support, grievance redressal mechanisms, or regulatory compliance disclosures warrant caution. Requests to transact in cash or outside official exchange infrastructure are particularly concerning. Similarly, the absence of KYC requirements should be viewed as a significant warning sign. When such red flags appear, consumers should pause and independently verify before proceeding.
If someone suspects fraud or has already been affected, what immediate steps should be taken?
Time sensitivity is critical in fraud situations. Consumers should immediately contact the national cybercrime helpline at 1930 and register a complaint through the official cybercrime reporting portal. They should simultaneously inform the exchange involved and preserve all transaction records, screenshots, communication logs, and wallet addresses. Early reporting increases the probability of fund tracing or transaction freezing. Delayed action significantly reduces the likelihood of recovery.
What overarching principle should guide consumer behaviour in this space?
The most important principle is to avoid acting under emotional pressure. Fear of missing out, urgency, or excitement are commonly exploited psychological triggers in digital asset frauds. Decisions should be based on independent verification, rational assessment of risk, and adherence to fundamental security practices. Consumer vigilance remains the strongest line of defence against preventable losses.
March 09, 2026, 2:15 PM IST
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