The Indian Ministry of Home Affairs (MHA) is taking proactive measures to address the surge in cryptocurrency-related illegal activities within the country. In response, they are developing a tool known as the Cryptocurrency Intelligence and Analysis Tool (CIAT) to combat crypto fraud.
Spearheaded by the Indian Cyber Crime Coordination Centre, this initiative aims to monitor crypto wallet addresses in the dark net, enabling the compilation of detailed transaction records, including timestamps, dates, and exchanges involved. CIAT will also promptly alert the MHA when it detects irregular or suspicious crypto activities.
The need for CIAT arises from a growing trend of crypto-related crimes in India. Recent reports have highlighted instances of individuals falling victim to crypto scams, such as an Indian software engineer who lost over $120,000 to fraudulent investments. In another case, two suspects were arrested for their involvement in an alleged peer-to-peer (P2P) crypto scam. These incidents underscore the urgency for improved monitoring and regulation of cryptocurrency activities within the country.
India’s proactive stance against crypto fraud aligns with its increasing crypto adoption. A recent Global Crypto Adoption Index ranked India at the top in terms of decentralized finance and centralized service value received. While this development showcases India’s embrace of cryptocurrency, it also highlights the need to address the accompanying challenges, which the CIAT tool aims to tackle by enhancing security and combating fraudulent activities in the crypto space.