The number of cryptocurrency investors is consistently growing. Most of the governments are actually not able to track the investments in cryptocurrency. This is the reason why there is no monitoring of the new accounts being opened. Cryptocurrencies can be used for illegal activities. Especially, when the investors are not monitored, the cryptocurrency exchanges can be used for money laundering as well. Similarly, they can be used for many different illegal activities as well.
Also, since initially the surveillance when it comes to cryptocurrency channels was pretty limited, money laundering was made possible. As a result, the terrorist could easily fund their crimes. In addition to that, there have been previous instances when terrorists have used a cryptocurrency financing as well. This is one of the main problems which many countries are facing when it comes to cryptocurrencies. It is not the only country facing such problems.
Tracking Cryptocurrencies used for Terror Funding
The counterterrorism community all over the world is not just tracking the money in the proper financial channels but also in cryptocurrency channels. This is done to ensure that the cryptocurrency channels are not used at all for any kind of terrorist activity.
Additionally, there are quite a few countries which are suffering from the same problem. India is at the center of the problem. This is because there are quite a few cryptocurrency exchanges. Moreover, there are no proper regulations on cryptocurrencies. Also, there are IT professionals which can use the cryptocurrency channels in order to launder the money. That is why India is actually at the center of the problem. Moreover, the cryptocurrency investors present in India are in huge numbers. This is one of the main reasons why India is facing a problem.
Recently, RBI stated that cryptocurrencies were banned in the country. Moreover, none of the cryptocurrency exchanges have the banking facilities as well. This is one of the main reasons why cryptocurrencies have actually been difficult to access in India in the recent times. Though this will not only stop money laundering as well as terrorist activities it will not allow the normal cryptocurrency investors to invest in them. That is why it is important for India to have a balanced approach when it comes to cryptocurrencies. Only when India has a balanced approach, it will become easier for the citizens to access the cryptocurrency markets.
At the same point in time, the authorities need to devise a method with the help of which, only the antistate actors are banned from the cryptocurrency markets rather than the normal investors as well.
