India's Strategic Countermeasures Against Crypto Crime Risks

In FY 2024-25, 49 cryptocurrency exchanges in India registered with the FIU to mitigate money laundering and terrorism financing risks. The exchanges reported suspicious transactions, revealing involvement in criminal activities like scams and fraud. India's legislative actions aim to curb associated financial risks.

India has ramped up efforts to regulate cryptocurrency exchanges, with 49 platforms registered with the Financial Intelligence Unit (FIU) during the 2024-25 fiscal year. This move is part of a broader initiative to tackle potential money laundering and terrorist financing threats linked to the burgeoning digital currency sector.

The report, which details strategic analyses of suspicious transaction reports (STRs), highlights the misuse of crypto funds in serious illicit activities. These include uncharted hawala transactions, gambling, scams, fraud, and even running illegal adult content sites, posing significant risks to the financial system's integrity.

The Indian government has enacted several legislative measures, including taxation on crypto income, to address these risks. Unlike other nations, India has designated the FIU as the primary authority to oversee and monitor Virtual Digital Asset Service Providers, ensuring compliance and accountability across the sector.

(With inputs from agencies.)