The Narcotics Control Bureau of India (NCB) has elevated its supervision of cryptocurrency transactions on the darknet as part of the measures to end drug trafficking within the country.
Nityanand Rai, the Minister of State for Home Affairs, unveiled how the government plans to handle the illegal transportation and inter-state movements of cocaine & heroin during a recent Parliamentary discussion.
Important data from India’s NCB shows a major rise in the use of cryptocurrencies in drug-related crimes over the past five years, mainly in cases of the darknet.
Rai Outlines Plan to Combat Drug Trafficking
While the session was in progress, Rai elaborated on a 13-point strategy that will help in dealing with the drugs that are moving through India and narco-terrorism, with a special emphasis on how to combat the misuse of digital currencies.
“A Special Task Force on Darknet and Cryptocurrency has been formed to keep track of suspicious transactions related to drugs on the darknet,” the official said.
At the same time, the NCB has started training programs that are dedicated to digital forensics, darknet activities, and cryptocurrency as the main areas to be explored for the betterment of their investigative capabilities of drug-related crimes.
However, the government’s way of dealing with the whole situation has been different, because some people do not agree, Ireland’s Finance Minister, however, has made the absence of cryptocurrencies in her recent 2024 Union Budget Speech, and strengthening the existing tax regulations through omitting them for yet another fiscal year:
Regulatory Landscape Remains Unchanged
The absence of any mention of cryptocurrencies in her recent 2024 Union Budget speech has led to the non-amendment of the existing tax reforms for one more fiscal year.
Earlier in 2024, the Financial Intelligence Unit (FIU) under the Ministry of Finance had taken action against offshore exchanges, such as Binance, which were not following the country®s Anti-Money Laundering Act.
Binance, once a major player in India’s crypto trading business, has been fined in order to resume operations, thus, a significant step forward, which was made in Indian cryptomarket regulation.
Meanwhile the barrier that appeared in Binance®s way, the company was open that they are willing to go back to the Indian market after they have received approval from the financial regulatory bodies in India.
India Trains Authorities on Crypto Forensics
India which made public the fact that it had trained some of its officials, associated with different cybercrime, and police departments in cryptocurrency forensics and investigation, during the financial year 2022–2023, just twelve months ago.
This training focused on enriching police officers’ skills by familiarizing them with cybercrimes committed with the help of cryptocurrency.
Under the NCB, 141 officers underwent training that was partly virtual and covered learning objectives such as cryptocurrency and darknet investigations, workshops on digital footprints, intelligence gathering from open sources, and social media analysis.
Spain-based blockchain intelligence company, TRM Labs, conducted a survey where 99% of the police departments asked for more knowledge on cryptocurrencies before they can have enough information to arrest the criminals who use cryptocurrencies for criminal activities.
The state®s stand on cryptocurrencies has been both a measure of surprise and a question of clarity.
The strict regulations on crypto purchases in 2022 with the additional setback of the crypto industry forced Indian traders to go for foreign exchanges resulting in the shift from the local scene.
Trading volumes were withdrawn from Indian exchanges and returned to them, on the other hand, after the ban on offshore entities.
Global Consensus and Future Prospects
One of the foremost to-dos of India as a host of the G20 in 2023 was to get global consensus on the creation of crypto policies that would be adopted by the confederacy.
Every G20 country came to the decision that global rules were the best strategy.
India’s moves have been the source of some objections, as some ask why it is seeking to facilitate a consensus without its own laws still being in force.
