Special Investigating Team on black money (SIT) reported that criminal gangs are increasing the use of cryptocurrencies in their operations. Criminals are using cryptocurrencies to launder money and smuggle drugs. The Indian government recently announced that they are ready with drafting bill that would ban the use of cryptocurrencies in India.
The drafted bill purposes a single law to deal with cryptocurrencies instead of coming up with various laws depending upon the crime. However, SIT on black money thinks that regulating cryptocurrency would not resolve the situation as these transactions are hard to track and are carried out with utmost secrecy.
According to a report published in Firstpost, SIT informed the government that Bitcoin and other cryptocurrency are allegedly used for narcotics, betting, smuggling and other various illegal activities. Even if there are proper regulations in place, it would still be very challenging to track criminals who are using cryptocurrencies for illicit activities. SIT also informed the government about the 22,000 Cr crypto scam that took place in Gujrat after demonetization.
Last month NASCOM, a trade association of Indian Information Technology and Business Process Outsourcing industry, said that the government should not ban the use of cryptocurrencies and should work on a regulatory framework that could help prevent illegal activities. SIT has suggested the government to declare transactions in cryptocurrencies illegal altogether instead of implementing the law.