India Takes On Crypto Crime with Global Exchange Database

India intends to implement a global database of cryptocurrency exchanges to aid law enforcement agencies in their fight against crypto-related crimes.

This initiative is part of India’s efforts to adopt international standards for regulating cryptocurrency assets.

According to The Economic Times, the launch is anticipated before the conclusion of the current fiscal year.

It is expected that the global database of cryptocurrency exchanges will play a pivotal role in providing vital information on cryptocurrency assets, allowing law enforcement agencies, such as the Enforcement Directorate (ED), the Income Tax Department, and the Central Bureau of Investigation (CBI), to better track and monitor their use in criminal activities, such as money laundering.

As previously reported, the Organisation for Economic Co-operation and Development (OECD) has released its Crypto-Asset Reporting Framework (CARF), which aims to collect tax-related information on cryptocurrency transactions.

A notable feature of India’s proposed exchange database is its incorporation of information on dark web cryptocurrency exchanges.

Officials from the Financial Intelligence Unit (FIU) have disclosed that India is actively pursuing cooperation from other nations to obtain additional intelligence on these secret transactions.

According to the Financial Intelligence Unit (FIU), between 2019 and 2021, drug-related transactions involved cryptocurrencies worth approximately Rs 28,000 crore ($3.3 billion).

The Home Ministry is also developing a Cryptocurrency Intelligence and Analysis Tool (CIAT), as previously reported.

The application aims to track crypto transactions on the dark web.

Beyond its primary objective of assisting law enforcement, the global database of cryptocurrency exchanges is anticipated to serve a broader range of agencies.

It will aid organizations like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in pursuing money laundering cases.

India struggles to curb crypto-related fraud and crimes due to the absence of distinct regulations. However, the central government is currently revising its crypto regulatory stance.