The Indian government has stepped in in an attempt aimed at curbing illegal crypto activities. Investigative agencies have been instructed to undertake crypto activity forensic audits. The findings from these investigations will be used by the police to combat financial malefactions.
A surge in crypto transactions is suspected due to crime-related activities. Forensic analysis shows an increase in the number of crypto wallets associated with financial crimes. Within a single year, crypto criminal activity skyrocketed by 45%. It is estimated that there was $5.6 billion in losses due to these activities in 2023 alone.
The number of forensic investigations from 2020 to 2024 greatly increased. The Ministry of Home Affairs reported that in 2020 only 11 cases underwent analysis, notably lower than the 291 estimated to be analyzed in 2024. Officials noticed that the same crypto investment platform was being used by criminals repeatedly. This information has been useful in curtailing fraudulent activity.
Crypto functions as a digital payment system. Its transactions occur between wallets through use of wallet addresses and without any bank verification. This allows direct transfers between users. Digital assets like BTC, ETH, LTC and Ripple facilitate these transactions. As the king of crypto, Bitcoin is still the most popular form of crypto, with Ethereum coming in second as the king of altcoins
The Indian government will still continue to strengthen its oversight of digital transactions. With forensic investigations increasing, authorities aim to minimize or even fight fraud fully and strengthen financial security. The crackdown on illegal crypto activities is expected to grow in the coming years.