The use of cryptos has led to several innovations and changes in the global economy. Speculators speculating on the future potential of this technology have driven most of the market capitalization. A new investor joins the market every day, hoping to double their investment and make maximum profits. The Indians have reportedly been most interested in digital currencies among these investors. The country has become one of the global leaders in crypto adoption, according to surveys. However, without proper regulations, Indian investors have been unsure of the limits of their investments and their consequences.
Several facts about digital currencies have been revealed by the government’s attempt to regulate the Indian crypto market. Cyber specialists claim that 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. It is a big threat to Indian security agencies. The use of cryptocurrency for terror financing has become one of the most advanced methods. When it is transacted on the darknet through networks like TOR, Freenet, Zeronet, and Perfectdark, it is untraceable for security officials.
Understanding the DarkNet
There is a secret underground network known as the dark web or darknet. It consists of a series of websites that are hidden from the general public, which means they cannot be found through traditional and legitimate search engines like Google.
It is common for search engines to display results for any queries as they contain indexes of links to websites. The results are ranked according to keywords and significance. On the other hand, the dark web uses information that cannot be found using these search engines, such as content from individual accounts and websites, social media, email, banking, and professional and personal databases. Furthermore, 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 being detected.
The anonymity of this information will create extreme challenges for Indian law enforcement agencies. Experts claim that the darknet has created a unique cyber economy in the country where various types of cybercrime services can be purchased.
India’s cryptocurrency policy will be dictated by national security concerns
The parliamentary standing committee has already proposed a bill with national security considerations at its center on finance. The chairman of the committee pointed out that terrorist financing through cryptocurrencies is a national security threat. The committee and investors need to be vigilant about circumstances surrounding cryptocurrency and blockchain technology, he said. A replicating advanced economy on virtual currencies will not be possible unless India achieves complete capital account convertibility.
Senior officials of the NCB claim that the use of this platform will increase drug trafficking and narco trade and boost communications between several terrorist organizations in the country.
The parliamentary standing committee on finance met with cryptocurrency stakeholders and exchange owners earlier this week to discuss the regulation of cryptocurrencies and related digital currencies and explore the possibilities presented 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 Indian government officials regarding cryptocurrencies.