India is reportedly making strides towards establishing a comprehensive global database encompassing all cryptocurrency exchanges which is intended to support the operation of law enforcement agencies in tackling crimes related to cryptocurrency. The initiation of such an enormous project showcases India’s intentions to toe the international regulatory standards line regarding cryptocurrency.
By anticipating the launch before the culmination of this fiscal year, according to The Economic Times, it’s made clear that India is setting its sights on keeping pace with fast-evolving technological challenges brought forth by the digital currency advent, especially those hailing from the darker side of the web.
This all-encompassing global database will serve as a significant source of intelligence, focusing on cryptocurrency assets, a much-needed tool that would be utilized by law enforcement agencies like the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), and the income tax department. This tool will possibly strengthen their scrutinizing proficiency of crypto usage in unlawful practices, like money laundering, a modern crime that is increasingly becoming a nuisance globally.
It’s noteworthy to mention that the Organisation for Economic Co-operation and Development (OECD) recently launched its Crypto-Asset Reporting Framework (CARF) which primarily concentrates on collecting tax-related data on cryptocurrency transactions, another frontier India will need to tackle.
Findings by the Financial Intelligence Unit (FIU) further affirm the dire need for such surveillance mechanisms. Based on their data, the period between 2019 and 2021 saw cryptocurrencies worth approximately Rs 28,000 crore ($3.3 billion) being used in drug-related transactions.
With the Home Ministry developing the Cryptocurrency Intelligence and Analysis Tool (CIAT) specifically designed to monitor transactions on the dark web, it’s clear the nation is levelling up its surveillance framework.
These combined initiatives are expected to provide the much-needed support to agencies conducting investigations related to cryptocurrency and money laundering. However, it should not be overlooked that the central government’s stance is shifting more favourably towards cryptocurrency regulation, despite previously grappling with an array of crypto associated frauds.
Nevertheless, this active engagement is indeed a substantial step forward in managing the unpredictable nature of digital currencies, despite inherent challenges posed by the innovative technology. With further support from the international community, it’s to be seen how effectively India can implement these new regulatory adventures and whether it might set a trend for others to follow.
Source: Cryptonews
