In a move to address the issue of increasing illegal activities related to cryptocurrencies, the Indian Ministry of Home Affairs (MHA) is developing a specialized tool called, Cryptocurrency Intelligence and Analysis Tool – CIAT to Analyze and monitor cryptocurrency transactions, according to CNBC on September 21.
CIAT is designed to be multi-purpose, with the goal of continuously monitoring darknet market activity. In particular, the tool will identify unusual activity and track blockchain wallet addresses participating in digital asset transactions. From the information collected, CIAT will create detailed records of transactions, including origin and destination addresses, execution time, date, participating exchanges, and more.
Furthermore, CIAT will have the ability to issue notifications to law enforcement when it detects accounts showing signs of suspicious activity or unusual transaction volumes. Notably, this tool is completely automated, helping to improve the ability of enforcement agencies to respond to potential risks.
Another important part of CIAT's mandate is to build a database of cryptocurrency exchanges both within and outside India , giving law enforcement the ability to effectively cooperate with trading platforms during the investigation when necessary.
According to the latest report from Chainalysis, India has been recognized as the country with the highest cryptocurrency usage rate in the world.