Global database of crypto exchanges in the works
cryptocurrency exchanges, including those operating on the dark web. The proposed database is expected to help law enforcement agencies, including the Enforcement Directorate (ED), income tax department and the Central Bureau of Investigation (CBI) get crucial information on crypto assets and track their use in crime and money laundering activities.
«By the end of this fiscal, we will have our own comprehensive crypto exchange database operating worldwide which will be available for enforcement agencies,» a senior official from the Financial Intelligence Unit told ET.
The Organisation for Economic Co-operation and Development (OECD) had unveiled Crypto-Asset Reporting Framework (CARF) for automatic exchange of tax information annually on crypto transactions in a standardised fashion.
The latest move is seen as aligning with the global thinking on keeping a close watch on crypto asset transactions.
«We are also seeking help from other nations for information on exchanges working on the dark web, which are difficult to track and mostly used for trafficking and terror financing,» the official said, adding that few nations have shared the database and efforts are on to source it from others as well.
The official pointed out that while most countries were willing to share info, tax havens were reluctant.
The Ministry of Home Affairs (MHA) is also taking keen interest in the project, following reports of increasing use of cryptocurrency in drug trafficking, and most recently during the Manipur violence, with many transactions traced to foreign jurisdictions, making it difficult for agencies to track them. It is already developing a Cryptocurrency Intelligence and Analysis Tool (CIAT)
The FIU detected illicit
