India aims to strengthen crypto crime detection through new database: report
The crypto exchange database is expected to launch by the end of this fiscal year
Mc_Cloud/Shutterstock modified by Blockworks
India is reportedly developing a database that will contain information about global crypto exchanges, including those that operate within the dark web.
The planned database is meant to aid law enforcement agencies, including the income tax department and Central Bureau of Investigation, in gathering crucial information about crypto asset transactions, the Economic Times reported on Tuesday.
The goal, according to the report, is to track potential involvement in criminal and money laundering activities. A senior official from the Financial Intelligence Unit (FIU) told the outlet that the database is expected to be unveiled by the end of the current fiscal year.
G20 members, including India, urged the Organisation for Economic Cooperation and Development (OECD) in April 2021 to develop a framework for an automated information exchange system to combat tax evasion.
Responding to this call, the OECD introduced a new global framework in October, known as the Cryptoasset Reporting Framework (CARF).
The CARF’s core principle is to automatically share crypto transaction information on an annual basis among taxpayers’ residing jurisdictions, following standardized procedures.
India’s recent initiative to establish a global database aligns with this international effort to closely monitor crypto transactions. The FIU official also mentioned that India aims to extract data about other dark web-based exchanges, according to the Economic Times report.
Blockworks has reached out for comment to the FIU.
India, once perceived as less receptive to cryptocurrencies, appears to be undergoing a shift in sentiment.
A recent Chainalysis report identified India as a global leader in grassroots crypto adoption and the second-largest crypto market by transaction volume.
Indian Prime Minister Narendra Modi endorsed the need for an international cryptocurrency regulatory framework during the B20 summit in August.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
- Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
