The Narcotics Control Bureau (NCB) and CBIC recently uncovered ₹2.2 crores worth of crypto payments in drug trafficking. There were a total of 11 cases that the authorities informed the parliament. The cases were reported after the Minister of State for Finance, Pankaj Choudhary, was asked if any investigating agencies had found the use of crypto for drug trafficking.
The ₹2.2 crores drug trafficking scam
With Pankaj Choudhary reporting on the cases, things are going to get tight for crypto in India. Such a big case could be used by authorities to justify their anti-crypto stance in the country. It also shows the entire industry in a bad light, even though it is bound to be just a fraction of the total crypto volume.
The government has already started to take proactive approaches to prevent such cases. Pankaj Choudhary said that officers in the cyber and forensic tech are being taught to collect evidence electronically. He further added that the Web3 space is regulated under the IT Act of 2000 as of now. Needless to say that the ever-evolving space might see a detailed regulatory framework implemented soon. For the same, the government has also formed a national strategy on AI and blockchain, said Pankaj.
Crypto market scenario in India vs. Worldwide
With the 30% crypto tax in India and the 1% TDS with no loss set off, the trading volumes on crypto exchanges have taken a hit. Since 1st April, the volume has fallen significantly, which shows traders cannot make profits under such harsh laws. Even though crypto adoption in the country is growing, the regulations are in the way.
On a worldwide level, things are a lot better, though. In the US and UK, the crypto regulations have become very favorable. The UK recently announced that they plan to be at the forefront of the crypto revolution. They have also introduced a crypto regulatory framework for stablecoins. We also have the executive order in the US that has already termed crypto as an essential part of the economy. The Indonesian government has also announced a mere 0.1% tax on crypto capital gains which is very favorable.
What are your thoughts as the NCB and CBIC uncover ₹2.2 crores worth of crypto payments in drug trafficking? And do you think this will affect the way crypto is regulated in India? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.