The Indian Ministry of Home Affairs (MHA) is taking steps to combat the growing issue of crypto-related crimes within the country. They are reportedly developing a tool known as the Cryptocurrency Intelligence and Analysis Tool (CIAT) to monitor crypto wallets operating on the dark net.
CIAT, spearheaded by the MHA’s Indian Cyber Crime Coordination Centre, aims to compile comprehensive transaction records from crypto wallet addresses. These records will include critical information such as timestamps, dates, exchange platforms used, and the types of services conducted. Furthermore, CIAT will raise alerts whenever it detects irregular or suspicious crypto activities.
This initiative is a response to the escalating problem of crypto-related illegal activities in India. Recent cases have highlighted the vulnerability of individuals to crypto scams and fraudulent schemes. For example, a software engineer reportedly lost over $120,000 in a crypto fraud incident, and police arrested two suspects involved in an alleged peer-to-peer (P2P) crypto scam in Ujjain, India.
Despite these challenges, India has seen a notable surge in crypto adoption. In fact, the country claimed the top spot in the 2023 Global Crypto Adoption Index, surpassing other nations in terms of decentralized finance (DeFi) value and centralized service value received. This index, compiled by blockchain analytics firm Chainalysis, positions India as a leader in the global crypto landscape.