India is making significant strides in the world of cryptocurrency regulation as it develops a comprehensive global database that includes all crypto exchanges, including those on the dark web. This initiative, set to launch by March 2024, aims to enhance the detection of cryptocurrency-related crimes and establish India as a dominant player in the regulation of cryptocurrencies.
The primary objective of this database is to provide law enforcement agencies, such as the Enforcement Directorate (ED), India’s Income Tax Department, and international entities, with the necessary tools to track and compile data on illicit cryptocurrency activities. By equipping these agencies, India hopes to combat the rise in associated criminal activities that have accompanied the surge in crypto adoption.
Aligning with Global Consensus
India’s pursuit of a comprehensive cryptocurrency-related database aligns with the consensus reached by G20 leaders on the need for a worldwide framework for crypto regulation. In August, the G20 proposed the implementation of the Crypto Asset Reporting Framework (CARF) introduced by the Organization for Economic Cooperation and Development (OECD). CARF is a transparent global tax framework that enables countries to share information about cryptocurrency assets.
India’s Growing Crypto Industry
India has gained recognition as a leader in global crypto adoption, as evidenced by entities like Chainalysis. With the second-largest cryptocurrency market by transaction volume, India is emerging as a prominent player in the industry. However, this increase in adoption has also brought about an upswing in associated criminal activities, prompting Indian authorities to prioritize regulatory measures.
At the G20 summit, Indian Prime Minister Narendra Modi expressed support for establishing a global framework for cryptocurrency regulation. In line with this commitment, Indian authorities have introduced the Crypto Intelligence and Analysis Tool. By leveraging this tool and the upcoming global database, Indian law enforcement agencies can better track and combat cryptocurrency-related crimes.
India’s development of a comprehensive global cryptocurrency exchange database marks a significant step towards combating illicit cryptocurrency activities. By aligning with global consensus and adopting regulatory measures, India seeks to solidify its position as a dominant player in the cryptocurrency industry. As these initiatives are implemented, law enforcement agencies will be better equipped to track and monitor cryptocurrency transactions, ultimately creating a safer environment for cryptocurrency users and investors.