India reportedly creating a global database to track and track cryptocurrency

India reportedly creating a global database to track and track cryptocurrency

India is reportedly creating a worldwide database that encompasses all crypto exchanges, including those on the dark web, to assist in the investigation of cryptocurrency-related crimes.

The plan will be implemented by the end of this fiscal year or March 2024. It is crucial to India's strategy to establish itself as a dominant player in the global cryptocurrency industry.

This database is designed to equip law enforcement agencies with the tools to track and collate information 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.

The G20's consensus on a worldwide framework for crypto regulation is reflected in India's efforts to develop a cryptocurrency-based database. In August, G20 leaders proposed implementing a Crypto Asset Reporting Framework, which was instituted by the Organization for Economic Cooperation and Development.

CARF, a transparent global tax system, enables countries to share information about cryptocurrency assets.

In addition, India has increased its presence in the cryptocurrency industry, earning recognition from individuals like Chainalysis as a leader in global crypto adoption. With a market volume of over 500 million transactions, the country is among the second-largest in the cryptocurrency industry.

The increase in crypto adoption has led to a rise in associated criminal activities. India's governments are taking steps to increase their emphasis on regulatory measures as a result.

Narendra Modi, India's prime minister, voiced support for creating a global framework for cryptocurrency regulation during the G20 summit. In a bid to combat cryptocurrency-related crimes, the Indian government has introduced a Crypto Intelligence and Analysis Tool.