In an attempt to take a lead on preventing use of cryptocurrencies for drug trafficking and arms smuggling, the government is taking several steps, including hiring of technical experts to assist in intelligence collection and investigation, setting up of e-surveillance and monitoring systems, training field officers on cyber and forensic technologies and coordination with foreign drug law enforcement agencies. The information was provided by Minister of State for Finance Pankaj Choudhary in Lok Sabha in a written reply to a question. Choudhary also informed the Parliament that so far, the Narcotics Control Bureau and Central Board of Indirect Taxes and Customs have unearthed the payment of approximately Rs 2.2 crore through cryptocurrencies in 11 cases linked to drug trafficking. The Reserve Bank of India has flagged its concerns regarding private cryptocurrencies like bitcoin, ether, etc to the government, saying legitimising these currencies could impact the financial stability of the country, in addition to being used for illegal activities such as money-laundering, terror financing, etc. Separately, in response to a different question Choudhary noted: “The technologies related to Metaverse/ Web 3.0 are still evolving. The Government is cognizant of emergence of new technologies and rapid proliferation of emerging technologies such as Artificial Intelligence, Blockchain, Drone, Augmented Reality / Virtual Reality, Metaverse, Web 3.0 etc. The Information Technology Act, 2000 covers the technology space. The Government of India has worked out national strategy on the emerging areas especially National Strategy on Artificial Intelligence and National Strategy on Blockchain”.
