The Indian Ministry of Home Affairs (MHA) has initiated the development of a cutting-edge tool called the Cryptocurrency Intelligence and Analysis Tool (CIAT). This decisive step was taken in a proactive move to combat the surge in crypto-related illegal activities within the nation according to CNBC report.
Further, it was done under the supervision of the Indian Cyber Crime Coordination Centre, a dedicated division for tackling cybercrime.
Monitoring Dark Net Crypto Wallets
Notably, CIAT’s primary function will be to keep a vigilant eye on crypto wallet addresses operating in the dark corners of the internet. This monitoring will encompass the meticulous recording of transaction details. It’ll also include timestamps, transaction dates, exchanges utilized, and the nature of services rendered. Further, CIAT will proactively alert the MHA upon detecting any suspicious or irregular crypto activities.
Rising Crypto Fraud Incidents
The urgency for such a tool has been underscored by the recent surge in crypto-related illegal activities within India. One distressing incident involved an Indian software engineer losing over $120,000 to crypto fraud. A person he met online had advised him to invest in a particular crypto coin, only to leave him unable to withdraw his hard-earned funds after depositing.
Also, another incident in July saw the apprehension of two suspects involved in an alleged peer-to-peer (P2P) crypto scam in Ujjain, India. Counterfeit bank accounts, ATM cards, and falsified documents were seized during the investigation. The suspects had purportedly employed fake IDs to swindle users on the Binance P2P platform.
India’s Crypto Adoption on the Rise
Furthermore, India’s growing interest in cryptocurrencies has prompted these proactive measures. Notably, on September 12, the nation clinched the top spot on the 2023 Global Crypto Adoption Index released by blockchain analytics firm Chainalysis.
This prestigious ranking further reflects India’s dominance in both decentralized finance value received and centralized service value received. Moreover, Nigeria and Thailand closely trail India in this groundbreaking index.
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