Crypto payments now preferred by drug dealers, says Indian NCB

Wednesday 16 September 2020, 3:31 PM AEST - 1 week ago

Crypto payments now preferred by drug dealers, says Indian NCBCrypto payments now preferred by drug dealers, says Indian NCB 19

Law enforcement agencies in India have discovered that most drug dealers have shifted to crypto payments as a method for buying hard drugs into the country, from across the border. Due to the anonymity with digital currencies, it is almost difficult for the agencies to trace the people behind the transactions. Crypto exchanges in India are looking to step up security measures to curb such transactions.

Drug dealers are foxing agencies with crypto payments

Indias federal law enforcement and intelligence agency, Narcotics Control Bureau (NCB) learned about the new payment strategy after an investigation carried out under the Narcotic Drugs & Psychotropic Substances (NDPS). The investigation also led up to the discovery of the increasing cross-border transactions in Mumbai, Delhi, Bengaluru, and Goa, for contraband items.

As New Indian Express reported today, NCB mentioned that crypto payments were mostly used in smuggling drugs and other contraband items from darknet marketplaces in the United States and Canada to India. Consequently, these crypto payments have been foxing the agencies from effectively policing the smuggling of contraband goods.

Supreme Court advocate, arbitrator, and domain expert on cyber laws and forensics, Neeraj Aarora, commented:

It is a dangerous trend because cryptocurrency can be bought from a hawala operator and can be used for making payments for the contraband. It will be very difficult for the law enforcement agencies to find out the origin of cryptocurrency in such a case.

Crypto exchanges must be regulated

The founder of WazirX, Nischal Shetty opined that the country ought to adopt a positive regulation for cryptocurrencies in order to ensure the use of crypto payments for drugs will be mitigated. To keep ...

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