India is developing a comprehensive global database of cryptocurrency exchanges to enhance monitoring capabilities and assist law enforcement in combating crypto-related crimes.
According to government officials, the database will be a vital tool for agencies like the Enforcement Directorate and Central Bureau of Investigation to track crypto transactions linked to money laundering, drug trade, and other unlawful activities.
A key aspect is the inclusion of exchanges operating on the dark web to provide intelligence on concealed platforms. India is reportedly seeking cooperation with other countries to obtain information on these hidden exchanges.
India’s Initiative aims to monitor illicit activities involving cryptocurrency
Between 2019 and 2021, around $3.3 billion worth of cryptocurrency was reportedly used in drug transactions in India. The exchange database is part of the country’s broader push to align with international cryptocurrency regulations.
Beyond law enforcement applications, the database will also support government organizations in pursuing financial crime cases involving cryptocurrencies. India currently struggles with surging crypto-related fraud due to a lack of regulatory frameworks.
While the central government is now taking steps to reign in illicit crypto activity, the new exchange database faces challenges in comprehensively mapping both public and concealed platforms. Despite limitations, it represents a shift towards proactive monitoring and enforcement.
As cryptocurrency adoption surges in India, authorities emphasize that prudent regulation should coincide with robust monitoring to ensure public safety and financial stability. The upcoming exchange database marks an initial step to enhance oversight.