India is taking significant steps towards establishing itself as a dominant player in global cryptocurrency regulation. The country is reportedly working on a comprehensive global database that will encompass all crypto exchanges, including those operating on the dark web. With the aim of detecting and combating cryptocurrency-related crimes, this initiative is set to launch by the end of the fiscal year, or in March 2024.
Bolstering Law Enforcement Efforts
The primary objective of this database is to equip law enforcement agencies with powerful tools to track and compile data related to illicit cryptocurrency activities. The Enforcement Directorate (ED), India’s Income Tax Department, and other international law enforcement entities will be the main beneficiaries of this resource. By leveraging this database, authorities hope to crack down on money laundering, tax evasion, and other illicit activities facilitated by cryptocurrencies.
India’s pursuit of a cryptocurrency-related database aligns with the consensus reached by G20 leaders on global crypto regulation. In August, the G20 proposed implementing 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 participating countries to share information about cryptocurrency assets. India’s efforts in this regard demonstrate its commitment to international cooperation and aligning with global standards.
Recognition in the Crypto Industry
India has been increasingly recognized as a leader in global crypto adoption. Entities like Chainalysis have acknowledged the country’s progress and its status as the second-largest cryptocurrency market by transaction volume. However, this surge in adoption has also resulted in a rise in associated criminal activities. Consequently, Indian authorities are intensifying their focus on regulatory measures to protect investors and ensure a safe crypto ecosystem.
Prime Minister Narendra Modi has shown support for creating a global framework for cryptocurrency regulation. During the G20 summit, he voiced India’s commitment to combatting cryptocurrency-related crimes. To this end, Indian authorities have introduced a Crypto Intelligence and Analysis Tool, emphasizing their determination to stay ahead of illicit activities in the crypto space.
India’s initiative to develop a comprehensive global database for crypto exchanges is a significant step towards establishing itself as a leader in global crypto regulation. By equipping law enforcement agencies with advanced tools, this database aims to track and compile data related to illicit cryptocurrency activities. As India increasingly asserts itself in the cryptocurrency industry, it recognizes the importance of addressing associated criminal activities. With international recognition and support, India strives to create a safer and more regulated environment for crypto investors and enthusiasts worldwide.