India’s Narcotics Control Bureau (NCB) is actively monitoring cryptocurrency payments on the darknet as part of ongoing efforts to combat drug trafficking in the country.
This was revealed by Nityanand Rai, the Minister of State for Home Affairs, during a parliamentary discussion on July 24. Rai gave insights into India’s current strategy to reduce the import and inter-state movement of narcotics.
Use of crypto in drug crime inconsistent
Data from the NCB, India’s premier drug law enforcement and intelligence agency, shows that the use of cryptocurrencies in drug crimes has been inconsistent over the past five years. However, the number of drug seizures related to the darknet and cryptocurrencies has been steadily increasing since 2022.
Rai presented 13 action plans to combat the growing problem of drug trafficking and narco-terrorism in India, two of which specifically targeted the misuse of cryptocurrencies. He stated, “A special task force on darknet and cryptocurrencies has been formed to monitor suspicious transactions related to drugs on the darknet.”
In addition, the NCB currently facilitates several training programs on digital forensics, the darknet and cryptocurrency.
According to data from the National Crime Records Bureau (NCRB), Punjab recorded the highest number of drug trafficking cases in India between 2020 and 2022.
No tax on crypto yet
On July 23, India’s Finance Minister Nirmala Sitharaman delivered a speech on the Union Budget 2024 in which cryptocurrencies were not mentioned, leaving existing tax rules unchanged for another year.
In January 2024, the Financial Intelligence Unit of India’s finance ministry blocked Binance and several other offshore crypto exchanges for non-compliance with the country’s Anti-Money Laundering Act. However, the Indian government gave the exchange a chance to resume its services on the condition that it pay a $2 million fine for non-compliance.
Binance reportedly accounted for over 90% of India’s crypto trading volume before the ban, but now plans to re-enter the Indian market after receiving approval from India’s financial regulator.
Source: https://newsbit.nl/india-intensifeert-toezicht-op-cryptocurrency-betalingen-op-het-darknet/
