In a proactive move to tackle the surge in cryptocurrency-related illegal activities, India's Ministry of Home Affairs (MHA) is developing a Cryptocurrency Intelligence and Analysis Tool (CIAT). The project is being executed by the Indian Cyber Crime Coordination Centre, an MHA establishment dedicated to addressing cybercrime through research, training, forensics, and investigation.
CIAT is set to function as a versatile tool designed to keep a vigilant eye on the dark net on a regular basis, and identify and monitor cryptocurrency wallet addresses involved in transactions. It will compile comprehensive records of these transactions, including details such as addresses, timestamps, dates, exchanges used, and the nature of services rendered.
Importantly, CIAT will automatically trigger alerts whenever it detects unusual or irregular cryptocurrency activity.
Further, the tool will have the ability to send alerts in cases where transactions are conducted through specific accounts exhibiting suspicious behaviour or unusually high transaction volumes. This feature will significantly enhance authorities' ability to respond promptly to potential threats.
A vital component of CIAT's functions will be the creation of a comprehensive database encompassing all known cryptocurrency exchanges worldwide, along with their contact information.
This database will be a valuable resource for law enforcement agencies, enabling them to establish communication with these exchanges as and when needed during investigations.
The urgency of implementing CIAT is underscored by recent statistics revealing the significant financial losses incurred due to cryptocurrency fraud. According to available data, a staggering sum of Rs 953 crore has been siphoned off through cryptocurrency scams. Additionally, the Narcotics Control Bureau (NCB) has identified 38 cases in the past three years in which cryptocurrency was linked to narcotics-related activities.
