An Indian man has been arrested by the police for allegedly using crypto to buy drugs. According to local media reports, the Anti-Narcotics Cell division in the Millennium City of India, Gurugram, has arrested an Indian national for obtaining the hallucinogenic substance LSD via crypto.
Authorities claim that the suspect bought the drugs in order to distribute them at a number of prominent events in the area. Mohammed Shahbaz, the accused, was born in Kolkata, West Bengal’s New Town. A concerted effort by the Indian police led to the suspect’s arrest at sector 43 in Gurugram on Wednesday, February 19.
According to Indian authorities, the suspect used a number of digital assets to buy the narcotics, which were created as “children’s tattoo stickers,” from an overseas supplier.
The suspect was found in possession of around 2.7 grams of Lysergic Acid Diethylamide (LSD) pills, which were made to resemble kid-friendly tattoo decals.
Crypto’s Involvement in Drug Cases Rises
Due to its anonymity and simplicity of cross-border transfers, cryptocurrency has become more frequently associated with illicit drug trades.
Since conventional banking systems are constantly being watched, cryptocurrencies like Bitcoin and Ethereum provide a means of evading laws, which makes them appealing to criminal activity.
Drugs like LSD can be bought and sold on dark web platforms, where transactions are carried out with digital currencies to protect privacy.
Although cryptocurrencies in and of themselves are lawful, law enforcement organizations are concerned when they are used for illicit purposes, such as buying drugs, which prompts more scrutiny and requests for more regulations.
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India Sees Rise in Crypto Illegal Transactions
Concerns over cryptocurrency’s use in unlawful operations have grown as a result of the alarming increase in illicit transactions in India. Because cryptocurrencies provide secrecy and convenience of cross-border transactions, criminals are increasingly using them for money laundering, drug purchasing, and terrorism financing.
Law enforcement organizations have drawn attention to the ways that cryptocurrency is being utilized illegally on the dark web to circumvent established financial institutions.
The decentralized structure of digital currencies makes it challenging to track and regulate such transactions, even in the face of rules and calls for more stringent oversight.
The absence of thorough regulatory frameworks has alarmed the government, which is calling for stricter legislation to stop illicit cryptocurrency activity and guard against misuse of the financial system.
Despite The Rise; India Increases Its Scrutiny Over Illegal Crypto Transactions
Indian authorities have increased their attempts to control illicit cryptocurrency transactions by strengthening oversight mechanisms and enforcing stricter laws.
The government has started looking into complete frameworks for regulating cryptocurrencies, and the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are actively combating illicit activity.
Authorities are working more closely with international regulators to monitor cross-border cryptocurrency transactions that are connected to drug trafficking, money laundering, and financing terrorism.
In order to maintain transparency, India has also enforced stronger Know Your Customer (KYC) regulations for cryptocurrency exchanges. The Enforcement Directorate (ED) and other law enforcement organizations have also looked into and confiscated cryptocurrency holdings in connection with illicit activity.
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