India developing a global cryptocurrency database

India developing a global cryptocurrency database

India is currently developing a worldwide database that encompasses all crypto exchanges, even those on the dark web, to enhance the detection of cryptocurrency-related crimes.

It will be launched by the end of this fiscal year or in March 2024. It is crucial to India's strategy to become a dominant player in global cryptocurrency regulation.

The main objective of this database is to provide law enforcement agencies with the tools to track and compile data regarding illegal cryptocurrency activities. The main beneficiary of this resource will be the Enforcement Directorate, India's Income Tax Department, and other international law enforcement agencies.

The G20 leaders' consensus on a worldwide framework for crypto regulation is based on India's desire for a cryptocurrency-based database. In August, G20 leaders proposed the adoption of a Crypto asset reporting framework proposed by the Organization for Economic Cooperation and Development.

CARF is a transparent global tax framework that enables nations to share information about cryptocurrency assets.

India has become a leading player in the cryptocurrency sector, gaining recognition from organizations like Chainalysis as a leading player in global crypto adoption. The country, ranked by transaction volume, is also the second-largest cryptocurrency market.

The rise in crypto adoption has led to an upswing in associated criminal activities. India's authorities are steadfast in their commitment to regulatory measures, which is reflected in the increased emphasis on regulatory measures.

Prime Minister Narendra Modi voiced support for a worldwide framework for cryptocurrency regulation during the G20 summit. In a bid to counter cryptocurrency-related crimes, Indian authorities have created a Crypto Intelligence and Analysis Tool.