Cryptocurrencies are rapidly becoming a preferred mode of doing transaction in drug trafficking, Parliament was informed .
The Narcotics Control Bureau and Central Board of Indirect Taxes and Customs have unearthed Rs 2.2 crore payment through cryptocurrency in 11 drug trafficking cases, Minister of State for Finance Pankaj Choudhary informed Parliament in response to a query.
In a written reply to the Lok Sabha, Choudhary said the government is taking steps like conducting training for the field officers on cyber and forensic technologies and on the collection of evidence through electronic means to check such usage.
“Narcotics Control Bureau and Central Board of Indirect Taxes and Customs have unearthed the payment of approx Rs. 2.2 crore through crypto-currency in 11 cases linked to drug trafficking,” he said.
The minister also listed regular liasioning with technical experts, coordination with foreign drug law enforcement agencies and assistance to states for procuring equipment, including electronic surveillance systems as steps taken by the government to check the usage of cryptocurrency in drug trafficking.
Last year in December, the Parliamentary Committee on Home Affairs had voiced concerns over the increasing use of digital currencies and darknet for drug trafficking. It had also suggested the Union Ministry of Home Affairs (MHA) to constitute a cyber-wing under the Narcotics Control Bureau.
Darknet is an overlay network within the internet that is inaccessible to conventional search engines and requires special browsers to be accessed. Darknet is often used for pornography and illicit trade, as users are largely untraceable.
In a report submitted in Parliament last year, the panel said, “The committee expresses concern about the increasing use of cryptocurrencies and ‘darknet’ for drug trafficking. Further, technology is being leveraged by drug traffickers to maintain anonymity, making it difficult to track the movement of drugs.”
The panel noted that steps are taken by NCB at the national and international level to contain drug trafficking in the country. But it emphasised that more needs to be done.
