In an effort to combat crimes and money laundering activities, India is preparing to launch a global database of crypto exchanges. This database will also include information on exchanges operating on the dark web.
The primary goal of this database is to assist law enforcement agencies, including the Enforcement Directorate (ED), the Income Tax Department, and the Central Bureau of Investigation (CBI).
An official from the Financial Intelligence Unit (FIU), as quoted by the Economic Times, stated that India will establish a database of crypto exchanges operating worldwide. This initiative will prove valuable to law enforcement agencies, the official emphasised.
Previously, the Organisation for Economic Co-operation and Development (OECD) introduced the Crypto-Asset Reporting Framework (CARF), designed for the automatic exchange of tax information related to cryptocurrency transactions.
The establishment of India’s crypto exchange database necessitates cooperation from other nations to obtain information on exchanges operating on the dark web. While most countries are willing to share this information, obtaining details from tax havens presents a significant challenge.
Given the substantial increase in the use of crypto for illegal activities, including drug trafficking and other organised crimes, the Ministry of Home Affairs (MHA) is highly interested in this project.
