The growing use of cryptos has led to several innovations and changes in the global economic sphere. Investors speculating on the future possibilities of this new technology have driven most of the market capitalization. Every day new investors are joining the market with the hope of doubling their investments and gaining maximum profits. Amongst these investors, Indians have reportedly been most enthusiastic about digital currencies. So much so, surveys revealed that India is one of the global leaders in crypto adoption. But without proper regulations, Indian investors have been unsure of the limits of the investments and their consequences.
The government’s attempt to regulate the Indian crypto market has revealed several facts about digital currencies. According to cyber specialists, the use of cryptocurrencies on the darknet for terror acts, drug trafficking, and other illicit activities poses a serious threat to India’s national security and a big threat to the security agencies as well. Cryptocurrencies have emerged as one of the most advanced methods for terror financing. And when it is transacted on the darknet through networks like TOR, Freenet, Zeronet, and Perfectdark, it becomes untraceable for the security officials.
The dark web or the darknet is a secret network that exists underground. It is made up of a series of websites that are hidden from the general public, which means they are not accessible through traditional and legit search engines like Google.
Normally, search engines present results for any queries as they contain indexes of links to websites. These are ranked based on keywords and significance. Whereas, the dark web uses information that is not available in these search engines, such as content from individual accounts and websites, social media, emails, banking, and professional and personal databases. Additionally, everything on the darknet is anonymous, which makes it easier for malicious practitioners to operate right beneath the noses of the government and security councils without getting caught.
This anonymity will create extreme challenges for the law enforcement agencies in India. Experts claim that the darknet has created a unique cyber economy in the country where various types of cybercrime services are being offered.
India’s cryptocurrency policy to be dictated by national security considerations
The parliamentary standing committee on finance has already proposed legislation with India’s national security considerations at the core. The chairman of the committee pointed out that terror financing using cryptos poses domestic security threats. He mentioned that the committee and the investors have to be watchful regarding the circumstances revolving around cryptocurrency and blockchain technology. He further added that replicating advanced economies on virtual currencies will not be possible unless India achieves complete capital account convertibility.
The senior officials of the NCB claim that the use of this platform will not only encourage drug trafficking and narco trade but will also boost communications between several terrorist organizations operating in the country.
Earlier this week, the parliamentary standing committee on finance met with the crypto stakeholders and exchange owners to discuss the regulations on cryptocurrencies and related digital currencies and to explore the different possibilities that are accompanied by these new technologies. PM Modi has alerted the state that over-promising and non-transparent advertisements pertaining to cryptocurrency will be treated as a punishable offense. And that he would not allow the youth of India to be misguided and eventually get scammed. Meanwhile, RBI governor Shaktikanta Das has also declared that the growing use of digital currencies may prove harmful for India’s economic state and financial market.
Financial stability and consumer protection are two main pillars of concern for the Indian government officials when it comes to cryptocurrencies.
