India is making strides in the world of cryptocurrency regulation by developing a comprehensive global database that will encompass all crypto exchanges, including those on the dark web. Set to launch by the end of the fiscal year or in March 2024, this initiative is part of India’s plan to establish itself as a leading player in global cryptocurrency regulation.

The primary objective of the database is to provide law enforcement agencies, such as the Enforcement Directorate (ED), India’s Income Tax Department, and international law enforcement entities, with the necessary tools to track and compile data on illicit cryptocurrency activities. With this resource, authorities hope to enhance their capabilities in detecting and preventing cryptocurrency-related crimes.

India’s pursuit of a cryptocurrency-related database aligns with the consensus reached by G20 leaders concerning the need for a worldwide framework for crypto regulation. In August, G20 leaders proposed the implementation of the Crypto Asset Reporting Framework (CARF) introduced by the Organization for Economic Cooperation and Development (OECD). CARF is a transparent global tax framework that enables countries to exchange information about cryptocurrency assets.

India’s efforts in the cryptocurrency industry have not gone unnoticed. The country has gained recognition from entities like Chainalysis as a leader in global crypto adoption. Furthermore, India ranks as the second-largest cryptocurrency market in terms of transaction volume. However, as cryptocurrency adoption grows, so does the risk of associated criminal activities.

The surge in crypto adoption has prompted Indian authorities to intensify their focus on regulatory measures. During the G20 summit, Indian Prime Minister Narendra Modi expressed support for the creation of a global framework for cryptocurrency regulation. In line with this objective, Indian authorities have introduced a Crypto Intelligence and Analysis Tool to fight against cryptocurrency-related crimes.

The development of a comprehensive global database marks a significant step forward for India in creating a safer environment for crypto transactions. By equipping law enforcement agencies with the necessary tools and data, the authorities aim to detect, track, and prevent illicit cryptocurrency activities. This initiative not only showcases India’s commitment to combating cryptocurrency-related crimes but also positions the country as a key player in shaping global cryptocurrency regulation.

India’s endeavor to establish a comprehensive global database for crypto exchanges is a significant move towards enhancing cryptocurrency regulation. As the second-largest cryptocurrency market, India recognizes the need to address the potential risks associated with increasing crypto adoption. Through closer collaboration with international law enforcement agencies and the implementation of global frameworks, India aims to create a safer environment for cryptocurrency transactions while solidifying its position as a leader in global crypto adoption.

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