India is reportedly developing a worldwide database that encompasses all crypto exchanges, even those on the dark web, to enhance the protection of cryptocurrency-related crimes.
The initiative is slated to be launched by the end of the fiscal year or March 2024. India's strategy to establish itself as a dominant player in global cryptocurrency regulation is crucial.
The primary goal of this database is to equip law enforcement agencies with the tools to track and compile data regarding illegal cryptocurrency activities. The main beneficiaries of this resource will include the Enforcement Directorate, India's Income Tax Department, and other international law enforcement agencies.
India's pursuit of a cryptocurrency-based database is consistent with the consensus reached by G20 leaders regarding a worldwide framework for crypto regulation. In August, G20 leaders proposed implementing a Crypto Asset Reporting Framework introduced by the Organization for Economic Cooperation and Development.
CARF is a transparent global tax framework that enables countries to share information about cryptocurrency assets.
In addition, India has become a leading player in the cryptocurrency market, earning recognition from organizations like Chainalysis as a leader in global crypto adoption. The nation is also the second-largest cryptocurrency market, ranked by transaction volume.
The surge in crypto adoption has resulted in an upswing in criminal activities. As a result, Indian authorities are putting more emphasis on regulatory measures.
Narendra Modi, India's Prime Minister, voiced support for creating a worldwide framework for cryptocurrency regulation during the G20 summit. In an effort to combat cryptocurrency-related crime, Indian authorities have developed a Crypto Intelligence and Analysis Tool.