The Indian Ministry of Home Affairs (MHA) is reportedly creating a cryptocurrency intelligence and analysis tool (CIAT) to tackle the growing issue of illegal cryptocurrency activities in the country. CIAT will monitor crypto wallet addresses on the dark net, compile transaction records, and alert the MHA to irregular or suspicious crypto transactions. The initiative comes in response to the rising incidents of crypto-related fraud and scams in India. The MHA's CIAT project is being led by the Indian Cyber Crime Coordination Centre, which focuses on addressing cybercrime.

Indian Ministry of Home Affairs Develops a crypto-intelligence Tool to Combat Illicit Activities


The Indian Ministry of Home Affairs (MHA) is actively developing a cryptocurrency intelligence and analysis tool (CIAT) to address the increasing instances of illegal cryptocurrency activities in the country, according to a report by CNBC. The MHA is taking this initiative to combat crypto-related crimes effectively.


The Cryptocurrency Intelligence and Analysis Tool (CIAT) project is being spearheaded by the Indian Cyber Crime Coordination Centre, a division of the MHA specializing in investigating and tackling cybercrimes. CIAT's primary function will be to monitor crypto wallet addresses operating on the dark net.


CIAT will collect and maintain transaction records, including timestamps, dates, information about exchanges used, and the nature of services conducted. Additionally, the tool will notify the MHA whenever it detects any irregular or suspicious activities related to cryptocurrencies.


This development comes in response to the surge in cryptocurrency-related illegal activities within India. Recent cases of crypto fraud and scams have highlighted the need for increased regulatory measures. Earlier this month, an Indian software engineer reportedly lost over $120,000 in a crypto scam after being advised by someone he met online to invest in a cryptocurrency.


In July, two individuals were arrested in Ujjain, India, for their alleged involvement in a peer-to-peer (P2P) crypto scam. The suspects were found in possession of fake bank accounts, ATM cards, and counterfeit IDs, which they purportedly used to deceive Binance P2P users.


The Indian Ministry of Home Affairs is taking proactive steps to address crypto-related criminal activities by deploying CIAT to monitor and analyze cryptocurrency transactions on the dark net.


Cryptocurrency adoption has been on the rise in India, with the country ranking first in the 2023 Global Crypto Adoption Index released by blockchain analytics firm Chainalysis. This underscores the importance of regulatory measures and tools like CIAT to ensure the safe and legal use of cryptocurrencies in India.


(EZRA REGUERRA, CoinTelegraph, 2023)