India's Ministry of Home Affairs (MHA) is taking steps to address the rise in cryptocurrency-associated illicit activities by initiating the development of the Cryptocurrency Intelligence and Analysis Tool (CIAT).

This endeavor is spearheaded by the Indian Cyber Crime Coordination Centre, an MHA division focused on tackling cybercrime through various means, including research and investigation, a local news outlet reported.

The introduction of CIAT comes at a time when the global discussion around digital assets is intensifying, as evidenced by events like Benzinga's Future of Digital Assets conference on Nov. 14.

The tool is engineered to consistently monitor the dark net, pinpointing cryptocurrency wallet addresses partaking in transactions.

It aims to amass detailed records of these dealings, capturing specifics like addresses, dates and the exchanges involved.

"CIAT will automatically trigger alerts whenever it detects unusual or irregular cryptocurrency activity," the report stated.

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It will notify authorities about transactions from certain accounts that show signs of suspicious activities or have notably large transaction volumes, aiding in swift action against potential risks.

One of CIAT's pivotal roles will be to curate an exhaustive database containing details of globally recognized cryptocurrency exchanges and their contact details.

This repository will serve as a crucial tool for law enforcement agencies, facilitating their interactions with these exchanges during investigative processes.

Recent figures emphasize the pressing need for tools like CIAT.

Current data indicates that cryptocurrency scams have led to a loss of an astonishing Rs 953 crore ($761 million).

Furthermore, the Narcotics Control Bureau (NCB) has pinpointed 38 instances over the last three years where cryptocurrency was intertwined with drug-related offenses.

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