Crypto Under Fire: Indian Parliament Panel’s Explosive Cybercrime Report Targets Digital Assets
India's parliamentary committee drops bombshell report painting crypto as cybercrime's favorite playground.
The Regulatory Black Hole
Anonymous wallets, cross-border flows, and minimal oversight—perfect storm for illicit activity according to lawmakers. Panel findings suggest digital assets bypass traditional financial controls with alarming ease.
Enforcement Nightmare
Tracking crypto transactions across decentralized networks makes traditional investigation methods look prehistoric. Law enforcement agencies struggle to keep pace with tech-savvy criminals exploiting blockchain anonymity.
Global Implications
India's stance could influence broader Asian regulatory approaches—when elephants dance, markets notice. Another case of regulators playing whack-a-mole while finance bros cash out before the hammer drops.
Cryptojacking: A Hidden Threat in Devices
Hackers are quietly hijacking devices to mine cryptocurrency, a trick known as cryptojacking. Unlike regular crypto mining, which needs powerful machines, these attacks target everyday laptops and phones, often without anyone noticing.
The Committee places cryptojacking in the same category as phishing, ransomware, and Distributed Denial of Service (DDoS) attacks, underlining how serious the threat has become.
Crypto Payments and Human Trafficking
The Committee has drawn direct connections between cryptocurrency and human trafficking networks. According to the MHA, crypto payments are being used to finance operations that lure Indian citizens abroad. Once trafficked, many end up trapped in scam centres in Cambodia, Laos, Myanmar, and Thailand.
The CBI explained that these centres force trafficked victims to run fraudulent loan applications, fake call centres, and extortion rackets. Cryptocurrencies are used to MOVE money for these operations, making the networks harder to track and dismantle.
Ponzi Apps and Call Centre Crypto Scams
Fraudulent trading platforms and Ponzi-style investment apps are another area of concern. C-DAC informed the Committee that fake apps promoting crypto investments are not only duping investors but also leaking sensitive business, healthcare, and government data online.
The report highlights that illegal call centres are central to these scams. Operators persuade people to invest in fake cryptocurrency projects or refund schemes and then disappear with their money.
The financial impact is huge, but the damage goes beyond money. Young recruits working in these call centres face legal charges, loss of reputation, and psychological distress when such operations are exposed.
The Dark Web and Crypto Transactions
The dark web has become a hotspot for crypto-fueled crime. Officials from the Central Bureau of Investigation (CBI) and the National Investigation Agency (NIA) say cryptocurrencies are increasingly the preferred payment method for illegal trades.
The Committee’s report highlights that everything from narcotics and fake identity documents to illegal arms and child exploitation material is being bought and sold using crypto on dark web marketplaces. It warns that such misuse is blurring the line between financial fraud and a serious national security threat.
Laundering Money Through Crypto Wallets
Money laundering remains one of the most difficult problems to address. The Committee records how crypto wallets are fueling cross-border laundering, with fraudsters moving money out of India almost instantly.
The CBI explained that proceeds from scams are layered through several channels: peer-to-peer cryptocurrency transfers, Gold purchases, offshore cash withdrawals, and international fintech platforms. Since India does not have reciprocal data-sharing agreements with many countries, law enforcement often struggles to freeze or trace these funds.
Ransomware Demands in Cryptocurrency
The Committee looked into how ransomware attacks are increasingly tied to cryptocurrency. Hackers lock up important files and demand payment to unlock them. Hospitals, schools, and businesses have all been affected, sometimes bringing normal operations to a halt.
Officials from MeitY and CERT-In told the Committee that more ransom demands are now being made in cryptocurrency. Some of these payments have even been linked to foreign groups, raising fears that ransomware could be used as a tool in cyber warfare.
Organised Crime and “Crime-as-a-Service”
The report draws attention to the growth of the Crime-as-a-Service (CaaS), particularly in Southeast Asia. Here, criminal networks openly sell phishing kits. Ransomware tools, deepfake technology, and even “Money Laundering-as-a-Service.”
These ecosystems depend on cryptocurrencies for anonymous financial transactions. The Committee observes that this has given cybercrime a global scale, with crypto-enabled underground banking systems supporting organised crime groups across borders.
Operation Chakra and Crypto Laundering
The CBI’s enforcement drive, Operation Chakra, was also referenced. Across several phases, these operations targeted scam call centres, investment frauds, mule accounts, and cryptocurrency-based laundering networks. The success of these drives, the Committee notes, shows just how deeply crypto is embedded in India’s cybercrime economy.
Call for Stronger Forensics
In its recommendations, the Committee calls for major investment in forensic infrastructure. It suggests setting up advanced labs covering malware, network, and memory forensics, alongside a specialised focus on cryptocurrency forensics. These facilities, the report stresses, must be available to law enforcement agencies across the country.
The Committee also noted the role of the United Nations Office on Drugs and Crime (UNODC), which has developed guides on cryptocurrencies for investigators and prosecutors. India, it suggests, should build on such frameworks.
Conclusion
Every mention of cryptocurrency in the 254th Report is tied to crime. From cryptojacking to Ponzi apps, human trafficking to money laundering, ransomware to dark web markets, the narrative is consistent: crypto is being used as a tool for cybercrime.
By urging stronger forensics, closer monitoring, and international cooperation, the Committee has made it clear that cryptocurrency misuse is now a national security concern. For India, the message is unambiguous: without urgent intervention, crypto-driven crime could deepen the country’s cybercrime crisis.
India’s latest cybercrime report links crypto to fraud, trafficking, ransomware, and dark web crimes, urging urgent forensic action.
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