India is preparing to introduce a sophisticated global database of cryptocurrency exchanges. This strategic initiative is designed to enhance the capabilities of law enforcement agencies in combating cryptocurrency-related crimes.
Moreover, this proactive step is in line with India’s broader goal of aligning its regulatory framework with international standards governing digital assets. Notably, according to The Economic Times, the official launch of this repository is expected during the current fiscal year.
This global repository is poised to emerge as a formidable asset in the arsenal of law enforcement agencies. Subsequently, this resource will be invaluable as It will provide tools for enhanced scrutiny and monitoring of cryptocurrency use in illicit activities, including money laundering.
Furthermore, It will benefit entities like the Enforcement Directorate (ED), the income tax department, and the Central Bureau of Investigation (CBI).
Earlier reports highlighted the introduction of the Crypto-Asset Reporting Framework (CARF) by The Organisation for Economic Co-operation and Development (OECD). CARF primarily focuses on collecting taxation-related data related to cryptocurrency transactions.
Additionally, India’s forthcoming exchange database is its explicit coverage of intelligence related to cryptocurrency platforms on the dark web. This inclusion highlights its commitment to addressing illicit activities in hidden corners of the internet.
Consequently, officials from the Financial Intelligence Unit (FIU) have revealed India’s active efforts. They are seeking cooperation from international counterparts to gather crucial insights into these hidden exchanges. This cooperative approach underscores India’s determination to tackle this issue globally.
Data from the Financial Intelligence Unit (FIU) reveals a concerning figure. Approximately Rs 28,000 crore ($3.3 billion) in cryptocurrencies was used for transactions linked to the illicit drug trade. This occurred over the period from 2019 to 2021.
India’s Multi-Faceted Approach to Building a Cryptocurrency Exchange Database
In a parallel development, the Home Ministry is actively involved. They are crafting a Cryptocurrency Intelligence and Analysis Tool (CIAT). This specialized instrument is designed for overseeing cryptocurrency transactions that occur in the hidden depths of the dark web.
Conversely, beyond its primary role of aiding law enforcement, this global cryptocurrency exchange repository will also serve a wider range of organizations.
Notably, it will provide invaluable assistance to entities such as the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). They will benefit in their investigations into cases involving money laundering activities.
Against the backdrop of India’s ongoing battle against crypto-related fraud, there is a clear need for comprehensive regulatory guidelines. However, there is a noticeable change in the central government’s stance. It signals a growing dedication to formulating strong cryptocurrency regulations.