India to Introduce Global Database of Crypto Exchanges for Law Enforcement
India is set to launch a comprehensive global database of cryptocurrency exchanges to assist law enforcement agencies in combating crimes related to crypto assets. This move is part of India’s efforts to align its regulations with international standards. The database is expected to be launched by the end of the current financial year.
Enhancing Law Enforcement’s Capabilities
The global database of crypto exchanges will play a crucial role in providing vital information about cryptocurrency assets. This will enable law enforcement agencies such as the Enforcement Directorate (ED), income tax department, and Central Bureau of Investigation (CBI) to effectively track and monitor their usage in criminal activities, including money laundering. The inclusion of information on dark web exchanges is a notable aspect of India’s proposed database.
Fighting Drug-Related Transactions
The Financial Intelligence Unit (FIU) has disclosed that cryptocurrencies worth approximately Rs 28,000 crore ($3.3 billion) were used in drug-related transactions between 2019 and 2021. To combat this issue, India is actively seeking cooperation from other nations to gather intelligence on concealed exchanges operating on the dark web.
Crypto Intelligence and Analysis Tool
The Home Ministry is also developing a Cryptocurrency Intelligence and Analysis Tool (CIAT) to monitor crypto transactions on the dark web. The global cryptocurrency exchange database will not only aid law enforcement but also provide support to organizations like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in investigating money laundering cases.
Hot Take: Strengthening Crypto Regulations in India
India’s plan to introduce a global database of crypto exchanges demonstrates its commitment to regulating cryptocurrency assets and combating associated crimes. By aligning its regulations with international standards, India aims to enhance law enforcement agencies’ capabilities in tracking and monitoring crypto transactions. The inclusion of dark web exchanges and the development of a Crypto Intelligence and Analysis Tool further emphasize India’s determination to address money laundering and other crypto-related crimes. As India strengthens its regulatory framework, it will likely create a more secure and transparent environment for cryptocurrency activities in the country.
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